SEC snags 7 illicit traders from China

The Securities and Exchange Commission (SEC) has accused seven Chinese nationals for their involvement with unauthorised securities business operation in Thailand.

The case has been forwarded to the Economic Crime Suppression Division.

On May 10, the SEC and police officials inspected a hotel in Ubon Ratchathani province and found several Chinese nationals equipped with computer devices displaying foreign equity trading operation.

It was discovered seven male Chinese nationals — Ke Xiwei, Zhou Zhou, Cheng Jia, Lu Yangyin, Wu Jincheng, Chen Xiaoxang, and Xin Ye — had used the hotel as an operations base to solicit foreign investors to engage in overseas stock trading. Evidence of investor solicitation and communication was found on their computers, said the SEC.

“Such behaviour is associated with an investment advisory service for securities business, which was conducted without permission,” said the commission. “It was also found that these persons may be involved with equity trading in Thailand without permission on behalf of customers, which is deemed to be within the scope of brokerage firms’ operations.”

Such behaviour violates Section 90 of the SEC Act of 1992. Offenders can be imprisoned between 2-5 years, with a fine of 200,000-500,000 baht, and 10,000 baht worth of daily fines during the violation period.

“The SEC will prosecute people found to use Thailand as a base to solicit securities investment without permission, which violates local law and could violate the law for foreign securities as well,” said secretarygeneral Rapee Sucharitakul.