DSI clarifies "JKN case": Evidence of overseas wrongdoing, reaffirms bond issue remains with SEC

The Department of Special Investigation (DSI) has provided an update on the JKN case involving financial statement manipulation, revealing that some offences extend beyond Thailand’s borders. The investigation has been transferred to the Attorney General for further legal action. Meanwhile, the issue of JKN’s bonds remains under consideration by the Securities and Exchange Commission (SEC).

The Department of Special Investigation (DSI) has updated the public on the progress of the JKN case, which was filed after the Securities and Exchange Commission (SEC) filed a complaint against JKN Global Group Public Company Limited (JKN) and certain executives for falsifying financial statements. The DSI took up the case as a special investigation.

Recent investigations have uncovered significant evidence pointing to some of the illegal activities taking place “outside the kingdom,” requiring a change in the authority overseeing the investigation according to legal procedures.

Revealing the accounting manipulation, damages exceeding 1.6 billion baht

Regarding the details of this case, the SEC found that JKN and its executives were involved in the following illegal actions:

• Creating false transactions: The creation of fake creditor and debtor records linked to foreign trade in content.
• Falsifying financial statements: Inserting false information and improperly preparing the financial statements for the year 2023 and Q1 2024.
• Misleading investors: Submitting the false financial statements to the SEC and publishing them through the Stock Exchange system to deceive the public.

These actions are considered violations under the Securities and Exchange Act B.E. 2535 (Sections 281/10, 300, and 312), with initial damages estimated at over 1.6 billion baht.

Case escalated to the "Attorney General"

Due to the discovery of international connections in the wrongdoing, the DSI is following the Criminal Procedure Code, Section 20, which stipulates that the “Attorney General” or an appointed official shall assume responsibility for the investigation.

The DSI has compiled all the facts and evidence and has submitted them to the Attorney General. The department is now awaiting coordination to receive further instructions for joint investigations.

Clarifying the "JKN bond" issue remains with the SEC

Apart from the financial statement issue, the DSI has clarified the ongoing issue surrounding JKN's bonds, which has raised concerns among many victims. The update is as follows:

• The bond issue is still under consideration by the SEC, in accordance with the Securities and Exchange Act.
• The SEC has not filed a complaint regarding the bond issue with the DSI.
• Therefore, the authority to investigate the bond issue currently rests with the SEC, not the DSI.

Key takeaways

• JKN accounting manipulation case: The DSI has found international connections in the wrongdoing and has transferred the case to the Attorney General as the head investigator under Section 20 of the Criminal Procedure Code.
• Case status: The DSI has submitted the case file to the Attorney General and is awaiting a directive to proceed with the investigation.
• Bond issue case: The matter remains with the SEC for consideration and has not yet been transferred to the DSI.