International Asset Management Group
August 7, 2001 - This morning at 09.00 a.m. the Securities and Exchange Commission, Thailand (SEC Thailand) in cooperation with the Anti-Money Laundering Office (AMLO) and the Royal Thai Police (RTP) have conducted raids against the International Asset Management Group at 8th and 11th Floors of Q-House and at address 36/2 Convent Road Bangkok suspected of being offices of unlicensed securities companies and may have engaged in fraudulent activities against foreign investors.
The raids were conducted as a result of evidences obtained from the AMLO. The documents indicate that SDD Consulting Group Co., Ltd. and International Asset Management Co., Ltd. who are registered as legal entities in Thailand have allegedly solicited a large number of foreign investors mostly Australian and New Zealand nationals to invest in shares in another overseas markets and these investors have suffered losses as a result.
Documents received from the AMLO also indicate that the group has used Thailand as a center to make telephone contact to induce overseas investors into making investment in another overseas markets. Commission fees were also charged to foreign investors and either investors have experienced difficulties in getting their money back or that no further contact could be made with the entities concerned. Such evidences indicate that the operations of such entities are in contravention of Section 90 of the Securities And Exchange Act B.E. 2535 which requires that the persons must be licensed by the Minister of Finance and also Section 343 of the Penal Code and Section 3 of the Anti-Money Laundering Act B.E. 2542.
Furthermore, evidences indicate that the group has frequently changed its places of business and attempted to conceal its business operations by renting virtual office to act as switch board facilities to transfer calls to other locations. As a result, the SEC Thailand has asked for cooperation from the AMLO and RTP in conducting the raids and the seizure of documents or evidences.
Following the raids, evidences found that the group has ceased operations at the Q-House address. Nevertheless, the authorities have recovered evidences such as securities brochures advertising the group as securities brokers and investment managers based in Thailand, sales script and operating manual used to train marketing officers and records showing that contact and orders have been received from overseas investors. As a result, the SEC Thailand is reviewing such documents with the view of filing criminal charges against the group for operating securities businesses without having licenses and for fraudulent acts against investors.
In addition, the AMLO has cooperated with the Immigration Office in preventing the persons responsible in the management of the group from leaving the country and has made an order freezing the money deposited with the Thai commercial banks in the amount of 11 million baht. For further information on this issue, please contact the AMLO at phone no. 66 2219 3636 or facsimile no. 66 2219 3625.
The article referred to below was at www.time.com/time/asia/biz/magazine/
Quote below:
The erratic Danny Sterk, who was convicted of fraud in the U.S. before
launching a Bangkok-based venture called International Asset Management,
seems to have been among the most aggressive, precipitating a feud between
himself and the management of Pete's boiler room. While it is not known
whether Pete's story is an exaggeration, a number of boiler-room operators
confirm that hit men were hired to do away with Sterk.
| October 19, 2001 |
International Asset Management |
(1)
International (2)
Mr. Dan Sterk (3) Mr. Stephen Robert Casciola |
90 & S.343
of the Penal |
SEC. News |
On October 19, 2001, the Securities and Exchange Commission, Thailand (SEC Thailand) has filed criminal complaint against International Asset Management Co., Ltd. (IAM) and 2 executives of IAM - Mr. Dan Sterk and Mr. Stephen Robert Casciola - on the ground that they conspired to conduct unlicensed securities businesses in Thailand and engaged in fraudulent activities against foreign investors.
Following the raid on August 7, 2001 and further investigation of documents seized from IAM including information and evidences received from foreign complainants, the SEC Thailand found that IAM has operated securities businesses without having licenses and has fraudulently acted against foreign investors. In this connection, IAM has used Thailand as a base to make telephone contacts to induce foreign investors into making investment in another overseas market and commission fees were charged to those investors.
Later on, foreign investors have experienced either difficulties in getting their money back or that no further contacts could be made with the entity concerned. Evidences indicated that IAM has frequently changed its places of business and attempted to conceal its business operations by renting virtual office to avoid direct contacts from investors.
Moreover, IAM has also created false understanding about the prices of securities that has been offered or sold to foreign investors by referring to the prices that are quoted in the Bloomberg's website. In fact, securities offered or sold to those foreign investors are deemed to be "restricted securities" which have resale limitations.
As such, they have no liquidity and are not the same issues as those non-restricted securities reported in the Bloomberg's website. The prices of restricted securities may be lower than those of non-restricted securities as investors were led to believe. In this regard, such actions are considered to be a fraudulent act.
In case of Mr. Dan Sterk and Mr. Stephen Robert Casciola, they are the incorporators of IAM, and directors who have authorities to operate IAM and control IAM accounts. In this regard, they are considered to jointly commit such offenses with IAM.
As such, the SEC Thailand has filed criminal complaint against these 3 offenders on the conspiracy of operating securities businesses in Thailand without having licenses and engaging in fraudulent activities with the Office of the Economic Crime Investigation Division of the Royal Thai Police for further investigation. Such aforementioned activities are in contravention of Section 90 of the Securities and Exchange Act B.E. 2535 with Section 83 of the Penal Code, and Section 343 of the Penal Code with Section 83 of the Penal Code.
Paul Richard Bell aka Dr. Richard King (NFA ID 0022445) was busted in Australia as working for International Asset Management and Trident International along with Danny Sterk and Stephen Robert Casciola - restrained from leaving and subsequently convicted.
He pleaded guilty in the Brisbane Magistrates Court to 21 charges laid by the Australian Securities and Investments Commission (ASIC) in relation to his activities as a cold-caller operating out of Thailand and the Philippines.
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