SEC panel imposes fines on two offenders for debenture public offering without approval

Following referrals and the SEC’s further investigation, it was found that Prasit, chief executive officer of Mandawee Tour, had held a seminar at a hotel in Udon Thani province to solicit the attendance of some 100 persons, mostly elderly, to make an investment with the company by purchasing securities of Mandawee Sawasdee Plc, which he claimed to be a merger between Mandawee Tour and Web Sawasdee Plc. 
In addition, Prasit also claimed that Mandawee Sawasdee securities were to be listed on the Stock Exchange of Thailand. 
Documents and subscription forms were given to the attendees who, if interested, would have to make a minimum investment of Bt100,000 in order to earn high returns at 8 per cent per annum until completion of the Mandawee Sawasdee listing. 
However, while the listing was incomplete, the investment money could be withdrawn within 45 days. 
Prasit was also found to have organised seminars at two other hotels in Bangkok and Chiang Rai provinces to solicit investments in a similar manner.
Mandawee Tour’s misconduct of offering securities in the debenture category without approval from the SEC was in violation of Section 33 and subject to the penalties under Section 268 of the Securities and Exchange Act of 1992. 
The Criminal Fining Committee therefore imposed a civil monetary penalty of Bt500,000 on the company. 
Prasit, who commanded or acted in such a way that resulted in the violation by Mandawee Tour, contravened Section 300 in conjunction with Section 33 and was subject to the penalties under Section 268 of the Act. 
The committee therefore ordered him to pay a civil monetary penalty of Bt500,000.
The SEC had released a public warning against solicitation for investment in Mandawee Tour on August 11, 2017, around the time that the agency received the referrals in the case.