Organization: Central Michigan University
Newsgroups: bit.listserv.seasia-l
Date:         Fri, 20 Nov 1992 08:02:52 EST
From:         Elliott Parker <3ZLUFUR@CMUVM.CSV.CMICH.EDU>
Subject:      TH: Sia Song facing arrest

=======================  Forwarded  Message  ===========================
Date: Thu, 19 Nov 92 00:33:25+0700
From: Kamol Hengkietisak <kamol@ipied.tu.ac.th>
Subject: Bangkok Post Nov 19: Sia Song facing arrest


THE Securities Exchange Commission (SEC) yesterday filed criminal
charges with the police accusing big-time stock trader Song
Wacharasriroj and ten of his business partners of share price
manipulations.

The move against the businessman, commonly known as Sia Song
(meaning Young Tycoon Song), sent shockwaves through the Stock
Exchange of Thailand as panic-stricken investors rushed to dump
their holdings.

The SET index at one stage plunged more than 50 points in the
afternoon round of trading before it rebounded and closed at 23.45
points less than the previous day.

Prime Minister Chuan Leekpai urged investors yesterday not to
panic, saying the official action taken yesterday was part of the
Government's effort to raise the SET to international standards
for the sake of public's future interest.

"This will enhance investors' confidence (in the Thai stock
market) so that they will not again be led into unlawful
practice," said the Prime Minister when asked about the SEC's
action.

Sia Song showed up at the Central Investigation Bureau yesterday
evening to hear the charges against him.

The young businessman, accompanied by a lawyer, brought with him
10 million baht in cash which he later posted with the
investigators to bail himself out.

Mr Song told the Bangkok Post in an interview yesterday that he
believed in his innocence and would fight the charges lodged by
the SEC.

Deputy police chief Pong-amat Amatayakul told reporters the SEC
claimed that Mr Song and his 10 associates had violated Sections
243, 246 and 247 of the Securities and Stock Exchange Act and
Section 883 of the Criminal Code.

Investigators claimed Mr Song had bought more than 5% of the
Bangkok Bank of Commerce's shares without notifying the SEC, then
cross-traded the shares and attempted to take over the bank.

Pol Gen Pong-amat claimed Mr Song and his associates had bought as
many as 118 million BBC shares.

The group had gained 2,125 million baht through the BBC share
manipulation, the police general claimed.

Mr Song categorically denied the charges at a press conference
held at the Imperial Hotel last night.

The businessman said he notified the SEC every time he bought more
than 5% of the BBC shares and had never been involved in any
cross-trading of the shares as each of the securities he invested
in was usually traded in a huge volume.

Mr Song also denied he wanted to take over the BBC. He argued that
he had never attended any BBC shareholders' meeting in person,
only sending his proxy to such meetings.

The businessman added that he had never voted against the BBC
management on any issue.

Named along with Mr Song in the police charges were Miss Suphan
Wacharasriroj, Mr Busakorn Wacharasriroj, Miss Pacharee
Wacharasriroj, Mr Somsak Charusamphanjitr, Mrs Chompunuj
Pinhathaivuth, Mrs Wannee Kuptipongsakul, Miss Manatnan
Sukhumpanich, Miss Pilokorn Hattakam, Mr Apinand Panyakorn and Mr
Surapol Chuengvivatporn.

Police claimed the violations took place between January and
October this year.

Mr Song said yesterday he had no plans to leave the country,
saying: "I was born in Thailand and I will die here."

Mr Song also claimed that he had been asked by Finance Minister
Tarrin Nimmanhaeminda before the SEC moved against him yesterday
to stop trading for two weeks.

Mr Song said he told the minister he would be able to stop trading
for only one week.

"It's unfair to arrest me after I've already agreed to stop," said
the businessmen, adding that he was ready to stop his trading in
the SET if that  would help the stock market to improve.

Well-informed SEC and police sources said the SEC decided to move
against Mr Song following reports that the man might try to leave
the country.

The sources said the SEC members agreed during their discussion
late on Tuesday night to request police protection for Mr Song for
fear that the man's life might be in danger in the wake of
yesterday's action against him.

The sources explained that such precaution was necessary because
the case involved several people including leading politicians.

Mr Song is scheduled to appear before an investigation panel at
the Anti-Economic Crime Division on Sathorn Nua Road this morning
for questioning in connection with the charges.

Meanwhile, Interior Minister Gen Chavalit Yongchaiyudh denied that
Mr Song was among the financial supporters of his New Aspiration
Party, when asked about reports of his possible connection with
the businessman.

But Gen Chavalit admitted knowing Mr Song personally though they
had no special relationship.

"I don't even know what's happening to him," Gen Chavalit said.

Asked if Mr Song would receive special treatment as a suspect, Gen
Chavalit said the businessman would be treated according to the
law.

"The law provides no special treatment for anybody," Gen Chavalit
said.

NAP spokesman Chaturon Chaisaeng also spoke out in defence of the
party.

"Our party has no relations whatsoever with Sia Song.  Moreover,
our party has a policy against accepting illegally-acquired
money," he said.

Deputy Prime Minister Amnuay Veerawan confirmed yesterday the SEC
had met on Tuesday night to discuss actions against Song.

Dr Amnuay said the SEC was acting within its legal power when it
decided to file charges against Mr Song.

Deputy Prime Minister Boonchu Rojanasathien said he believed
police had sufficient evidence to move against Mr Song.

He said the Government was compelled to act on the case to restore
investors' confidence in the SET.

"We need to put out the fire at its origins to prevent it from
further spreading," Mr Boonchu said.
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