The Thailand Securities and Exchange Commission has filed a criminal complaint with the Department of Special Investigation against JKN Global Group Public Company Limited, its Managing Director and Chief Executive Officer Mr. Jakkaphong Jakrajutatip, and director Ms. Pimauma Jakrajutatip. The SEC alleges collusion to include false statements and incomplete, inaccurate or false accounting in JKN’s 2023 annual financial statements and first-quarter 2024 accounting records, and the subsequent submission or disclosure to the SEC of the 2023 financial statements and the Form 56-1 One Report containing those financial statements. The complaint follows auditor observations of several unreasonable aspects of content licensing transactions, including duplicate licence purchases, large additional purchases despite liquidity problems, potentially non-existing buy orders, incomplete records, and inconsistencies between licensing documents and audit information, resulting in the auditor being unable to express an opinion on JKN’s 2023 consolidated and separate financial statements. The SEC’s review of 2020–2023 financial statements found licensing assets increased considerably in ways it considered inconsistent with licensing revenue and year-end receivables levels, raising questions about the reasonableness and existence of content licences, receivables and related sales. The SEC’s findings led it to consider that fictitious creditor and debtor records were created and included in 2023 financial statements and Q1 2024 accounting documents, with misstatements including overstated revenue and liabilities, incorrect period recognition of royalty payables, and the recording of trade payables in 2024 to mislead and then use those trade payables to exercise voting rights to select JKN’s rehabilitation plan preparer. As a result of the filing, the persons subject to the complaint are deemed to have untrustworthy characteristics and are disqualified from being directors or executives of securities issuing companies and listed companies for the period the complaint remains pending, starting from the date of filing with the DSI. The criminal process will proceed through inquiry, prosecution and court adjudication; the SEC also said it is conducting further investigations into other suspicious matters and will coordinate with the DSI, with results to be disclosed in due course.

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