A brake for runaway scandal of Thai insider trading
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We now have four recent cases in which the SEC has merely levied token fines against insider trading by directors of listed Thai companies, rather than referring them for criminal prosecution as required under the law if the guilty are deemed to have dama
I cannot understand how insider trading by company directors can be construed as a victimless crime with no negative implications for society.
If the SEC finds it too onerous to pursue criminal prosecutions through the police, despite its legal obligation to do so, it should consider using the Computer Crimes Act (CCA), instead of or in addition to the SEC Act. Since the market is fully computerised, any stock order, whether placed online or by phone, has to go through the Internet.
When the CCA came into effect in 2007 the public was told its purpose was to protect them from Internet fraud. However, it has mainly been used to intensify penalties for defamation. Using the CCA against insider traders who wilfully defraud minority shareholders would be using the law for its intended purpose. This would also follow the example of more developed markets, such as the US, where federal laws against mail and wire fraud are frequently used to snare insider traders who might otherwise evade prosecution.
George Morgan
