Thai Regulator Accuses Doctor Boon Over False Share Pledge Claims

SEC files criminal complaint alleging misleading statements about Thonburi Healthcare Group holdings, following forced share sales

 

Thailand's Securities and Exchange Commission (SEC) has launched legal action against prominent doctor Boon Vanasin, filing a criminal complaint with the Economic Crime Suppression Division (ECD) and the Anti-Money Laundering Office (AMLO) on Friday.

 

The regulator alleges that Dr Boon made false statements regarding the pledging of his shares in Thonburi Healthcare Group Public Company Limited (THG).

 

The SEC's investigation, triggered by information from the Stock Exchange of Thailand in October 2024, focused on a media interview given by Dr Boon in September 2024.


In an interview, Dr Boon, a major shareholder in THG, stated that neither he nor his family had ever pledged or borrowed against their THG shares, either on or off the market. He claimed it was something he would not do as a significant stakeholder.

 

However, the SEC's inquiry uncovered evidence contradicting these claims. They found that Dr Boon and entities within the Vanasin group had, in fact, pledged a substantial number of THG shares to various individuals.

 

Furthermore, a portion of these pledged shares had already been forcibly sold through foreclosure, with the remaining shares highly likely to have changed ownership.
  

Given Dr Boon and the Vanasin group's position as the second-largest shareholder bloc in THG, the SEC argues that Dr Boon's statements misled the public into believing that the major shareholder structure of THG remained unchanged.

 

This, the regulator contends, constitutes a false or misleading statement of material fact concerning information related to THG, likely to impact the company's share price or investment decisions. 

 

Such actions are deemed a breach of Section 240 of the Securities and Exchange Act B.E. 2535 (1992), carrying potential penalties under Sections 296 and 296/2 of the same Act. As a result, the SEC has filed a criminal complaint against Dr Boon for further legal proceedings by the ECD.

 

In addition to the complaint filed with the ECD, the SEC has also reported the matter to the Anti-Money Laundering Office (AMLO) for their consideration.
  

The alleged false reporting is considered an unfair trading practice in securities, which qualifies as a predicate offence under Thailand's anti-money laundering legislation.

 

Following the SEC's complaint, the criminal law process will now involve investigation by police, potential prosecution by public prosecutors, and ultimately, adjudication by the courts.

 

The SEC has stated its commitment to monitoring the progress of the case and will fully cooperate with all relevant authorities to ensure the Securities and Exchange Act is enforced.

(2025/04/11-00:00)