SEC revokes approval of an investment consultant for 10 years for performing duties dishonestly
Bangkok, 24 October 2017 – The SEC has revoked the approval for Mr. Pisist Phong-pheuag, then working for Apple Wealth Securities Public Company Limited, as a capital market investment consultant for 10 years on account of deceiving several clients, falsifying documents, spending clients’ money for his own interest, and using clients’ trading accounts to trade securities for himself.
Following a complaint inspection report from Apple Wealth Securities, the SEC has investigated further and found that Pisist had solicited a client to trade securities to earn the set interest rate of 8 percent within six months. After the client fell for the solicitaion and transferred in the money, Pisist recorded false information in the company’s documents by identifying the transferred money as his older sister’s for her trading account which Pisist had opened for himself. Later, he used the money to buy securities for his own interest.
In addition, Pisist advised other clients to buy shares of a company falsely said to be listed on the Stock Exchange of Thailand even though it has already been listed. The clients transferred money to his account for trading such shares, but he did not do so for the clients. Moreover, he was found to have used the trading accounts of two other clients to buy securities for himself because his sister’s account had reached its maximum credit line. All these acts have causd a large amount of damage to several clients.
Pisist’s misconduct above is deemed a failure to perform duties honestly in accordance with the Notification of the Capital Market Supervisory Board*. The SEC has therefore revoked the approval as a capital market investment consultant and banned him from re-applying for an approval as capial market personnel for 10 years, starting from 21 October 2017.
Apple Wealth Securities has terminated Pisist’s employment since 1 April 2016.
In order to prevent deception and damage, investors are strongly advised to examine documentation related to money transfers and securities trading transactions regularly. In case of doubtful authenthicity, investors should seek clarificatioin from the back office of such securities firm. It should be reminded also that money for trading transactions must be transferred into the securities account of the responsible securites company only, and that accepting a deposit of shares from any investment consultant into investors’ own trading accounts is not allowed.
*Clause 23(1) of the Notification of the Capital Market Supervisory Board No. Tor Lor Thor. 8/2557 Re: Rules on Capital Market Personnel dated 3 June 2014 and the Prohibited Characterisitics of Capital Market Personnel under Group 3 of Clause 31(1) of the said Notification.