Former Justice Minister leads probe into Stark share scandal

Former Justice Minister Pongthep Thepkanjana has been appointed as the new head of the government’s working group investigating the multi-billion-baht Stark share scandal. Pongthep replaces Pichai Nilthongkham, who resigned, according to the Ministry of Justice.

Pongthep’s appointment is accompanied by the inclusion of the Secretary-General of the Security and Exchange Commission (SEC), the President of the Thailand Federation of Accounting Professions (TFAC), and the President of the Thai Investors Association (TIA). This decision was formalised in an order signed by Justice Minister Tawee Sodsong, as stated by Somboon Muangklam, an adviser to the minister.

The working group has been tasked with analysing the lessons to be learned from the high-profile share fraud scandal involving Stark Corp.

Police Colonel Yutthana Praedam, acting Director-General of the Department of Special Investigation (DSI), provided updates on the ongoing investigation. He revealed that approximately 380 million baht was transferred in multiple transactions from Stark to seven parties, actions now believed to be acts of money laundering.

Two of the individuals involved are among the 11 suspects previously arrested and currently remanded in custody, awaiting a hearing by the Criminal Court. The first hearing is scheduled for January 14 next year.

The 11 jailed suspects include Chanin Yensudchai, a former Stark CEO, who recently returned to Thailand from Dubai after being tracked down and arrested there at the special request of Prime Minister Srettha Thavisin to the United Arab Emirates (UAE).

The remaining five parties, who received money in sums ranging from 50 million to 100 million baht, will soon be summoned to answer charges.

The Stark share scandal has resulted in at least 14.77 billion baht in damages to shareholders and stock investors. This includes 9.19 billion baht in corporate bonds and a 5.58-billion-baht rights offering, as outlined by Pol. Col. Yutthana.

Around 3 billion baht worth of assets linked to the scandal have already been confiscated, while the SEC continues its efforts to seize more assets.

Witthaya Nititham, spokesman for the Anti-Money Laundering Office (AMLO), stated that 4,724 damaged parties are seeking to recoup their money, estimated at 3.24 billion baht. However, the funds cannot be returned until a court order is issued, reported Bangkok Post.