Founder and sister of JKN resign following charges filed by SEC

The founder and sister of JKN Global Group, Jakkaphong Jakrajutatip, and Pimuma Jakrajutatip, respectively, have tendered their resignations from all positions within the company following the filing of criminal charges by the Securities and Exchange Commission (SEC). The SEC has alleged that the company’s financial statements for the full year 2023 and the first quarter of 2024 contained falsified or omitted material information, leading to inaccurate financial disclosures that did not reflect the actual financial standing of the company.

In response to the allegations, JKN confirmed the resignations in a filing to the Stock Exchange of Thailand, effective as of June 5, as the SEC forwarded the charges to the Department of Special Investigation (DSI) involving JKN, Jakkaphong, and Pimuma. The company is currently reviewing the allegations and assessing the appropriate legal actions to take. A special audit is underway by Dr. Virach & Associates, an independent auditor, to verify the authenticity of reported content rights and related liabilities, with the audit expected to conclude soon.

The company’s board will convene to acknowledge the resignations formally and decide on the next steps regarding governance and executive leadership. The SEC’s investigation revealed that JKN’s auditor had raised significant concerns regarding irregularities in the company’s content licensing transactions, prompting further examination. Evidence suggested that Jakkaphong and Pimuma had collaborated to fabricate creditor and debtor records, leading to the misrepresentation of financial statements for the years 2023 and 2024.

The inaccuracies in the financial statements caused an overstatement of revenue and liabilities, as well as the misrepresentation of royalty liabilities in different accounting periods. These actions resulted in the understatement of actual liabilities and assets in JKN’s 2023 financial statements. Furthermore, the fabricated trade payables from 2023 were carried over to the 2024 accounts, creating a false impression of increased trade liabilities. These falsified entries were allegedly used to influence the selection of a rehabilitation planner for JKN, a deceptive move violating the Securities and Exchange Act.

Moreover, Jakkaphong is accused of submitting false financial statements and reports to the SEC for the year 2023. The case has been formally referred to the DSI for further legal proceedings. The company is cooperating with authorities in the investigation and is committed to addressing the issues raised by the SEC regarding the integrity of its financial reporting.