SEC revokes approval for a securities investment consultant for 10 years
Bangkok, 9 February 2018 – The SEC has revoked the approval for a securities investment consultant by the name of Mr. Sakkarin Uttakrit for 10 years on account of committing undue acts toward clients’ assets and using a client’s trading account to trade securities for his own interest.
Following Apple Wealth’s inspection report related to clients’ complaints against Sakkarin and the SEC’s further investigation, Sakkarin was found to have acted in the following manners:
(1) Soliciting a client to buy shares on the NP/SP List for the purpose of averaging out the cost of shares in the client’s portfolio. He also claimed that the share issuer would increase capital shares and be allowed to resume trading on the Stock Exchange of Thailand. The client was interested in such deal but only had money for partial investment. Sakkarin then tricked the client into believing that he would join the investment and leave the purchased shares in the client’s account. The client therefore transferred money to Sakkarin while in fact Sakkarin did not execute any purchase order of such shares. Later, Sakkarin lied to the client that his shares in the client’s account had been sold with capital gain and he wanted his money back together with the capital gain, at the amount of 341,100 baht. The client believed Sakkarin’s false claim to be true because an approximately similar amount of money had been transferred to the client’s bank account. However, the transferred money was in fact from an unauthorized sale of other shares in the client’s account, not the ones initially identified;
(2) Soliciting a client to subscribe for shares and transfer 720,000 baht into Apple Wealth’s bank account for such purpose. Sakkarin, however, informed the company that such money belonged to another client and changed the name and phone number of the transferor. Later, Sakkarin prepared a withdrawal slip and used 319,953 baht to pay for a securities purchase in another client’s account and deposited the remaining amount of the withdrawn money into the second client’s bank account. In addition, Sakkarin used the trading account of the second client to trade securities for himself with the trading volume exceeding 40 million baht;
(3) Soliciting a client from the securities company he used to work for to open a trading account with Apple Wealth. He lied that the shares in the client’s trading account at his former employer had been transferred to Apple Wealth when in fact Sakkarin had never purchased any shares for the client in the first place. He made up false documents and misled the client that such share transfer did occur. Moreover, Sakkarin tricked the client to believe that there were trading transactions in the client’s account at Apple Wealth by showing fake trading documents to the client. Later, the client ordered to sell shares, which Sakkarin confirmed that it could be done, but no money from the sale order was deposited into the client’s bank account.
Sakkarin’s aforesaid misconduct was a failure to perform duty honestly by committing undue acts toward his clients’ assets and using a client’s trading account to trade securities for his own interest and was deemed offenses under the Notification of the Capital Market Supervisory Board*. The SEC has therefore ordered a 10-year revocation of approval as a securities investment consultant. However, since the approval period has already ended, he is banned from re-entering as capital market business personnel for 10 years, starting from 10 February 2018.
*Violation of Clause 23(1) and possessing the prohibited characteristics of capital market business personnel under Clause 31(1) of the Notification of the Capital Market Supervisory Board No. Tor Lor Thor. 8/2557 Re: Rules on Capital Market Business Personnel dated 3 June 2014, as amended by the Notification of the Capital Market Supervisory Board No. Tor Lor Thor. 48/2560 Re: Rules on Capital Market Business Personnel (No. 7) dated 30 August 2017.