Chanin Yensudchai, former CEO of Stark Corporation, has been arrested in Dubai and is set to be deported to Thailand on Sunday. Yensudchai is one of the key suspects in the Stark Corporation embezzlement scandal, which has become one of Thailand’s largest corporate fraud cases in recent years.
Arrest and Deportation
The arrest followed Prime Minister Srettha Thavisin’s request for the United Arab Emirates to help track down Yensudchai, who had been hiding in the country. The prime minister instructed the Department of Special Investigation (DSI) to prepare for his deportation. Reports suggest that Yensudchai will arrive in Thailand at 8 am on Sunday, where DSI investigators will meet him at Suvarnabhumi Airport before questioning.
Embezzlement Case Background
Yensudchai had evaded authorities after failing to acknowledge charges related to irregularities in Stark’s financial statements. The DSI had issued an Interpol red notice and revoked his passport to facilitate his capture. The case, accepted by the DSI in June 2023, involves allegations of forgery, fraud, embezzlement, and money laundering by Yensudchai and six other Stark executives, along with five related companies.
Stark Corporation Scandal
The scandal centers around Stark Corporation, a major player in the wire and cable manufacturing industry, which faced accusations of falsifying financial statements, inflating revenues, and misappropriating company funds. External auditors discovered discrepancies in early 2023, leading to an investigation by the Securities and Exchange Commission (SEC) that confirmed financial manipulation dating back several years.
Stark executives allegedly created fake sales records, inflated asset values, and hid liabilities to deceive investors, artificially boosting the company’s stock price and securing loans. The fraud affected 4,704 shareholders, causing 14.7 billion baht in financial damage.
Ongoing Investigation
Yensudchai’s arrest marks a critical step in the ongoing investigation into one of Thailand’s most significant corporate scandals, with further questioning and legal proceedings expected upon his arrival in Thailand.