KC Property Plc has announced that two persons implicated in fraudulent acts accused by the Securities and Exchange Commission (SEC) have been expelled from the company.
The two executives accused of inaccurate accounting records were identified as Kitisan Mookdee and Teerasit Sangngern. Mr Kitisan held the positions of director and managing director, while Mr Teerasit was the assistant managing director of the legal department.
“The company was informed of the matter on Jan 5 and the two persons have been terminated from the positions of director and executive of the company, respectively from Jan 5,” said KC Property in a statement.
Both fall under the SEC’s definition of “untrustworthy characteristics for directors and executives of a securities issuing company or listed company” pursuant to the SEC notification, the statement said.
“The two executives have left their positions and are barred from serving as directors or executives of securities issuing or listed companies pursuant to the SEC Act.”
The terminations will not effect the company’s business operations, the statement said.
The SEC last Friday filed a criminal complaint with the Department of Special Investigation against four former and current executives of KC Property Plc and three associates for jointly committing dishonest acts to misappropriate money received from the sale of KC short-term bills of exchange (B/Es) for their own interest or for other persons’ interest.
The case also involves seeking unlawful gains and consenting to the omission of the B/E transaction records, which caused inaccurate preparations of KC accounting records.
The aforementioned four executives are Pattarapob Ittisanyakorn (formerly Krittiphat), Sunchai Intarauksorn, Mr Teerasit, and Mr Kitisan.
The three associates are Thepthiwa Bootprom, Jaroonluck Kongkarien (formerly Nittha) and Veerawat Sukwara.
Following the auditor’s report and further investigation by the SEC, it was found that from September 2015 to October 2016, the executives and their associates had jointly committed fraudulent acts by misappropriating the sale money from 25 issues of KC B/Es, at a total value of about 425 million baht, for their own or other persons’ interest.
“The misconduct in this case may be liable to be a predicate offence under the Money Laundering Control Act,” the SEC said in the statement. “The SEC has therefore forwarded the case to the Anti-Money Laundering Office for further consideration regarding relevant matters.”
Mr Sunchai had left his position at KC Property on Jan 4, while the company will seek and appoint a person with appropriate qualifications to replace Mr Kitisan’s position in order to comply with the Limited Public Company Act 1992.
KC shares have been suspended from trading on the SET since Jan 4, 2017.