DSI approves prosecution of gang that duped foreign land-buyers

The Department of Special Investigation (DSI) yesterday ruled to prosecute a legal consultancy and a foreign gang that duped foreigners into buying land through Thai nominees in major tourist destinations.

The ruling was made at yesterday's meeting chaired by Justice Minister Charnchai Likhitjittha after the arrest of Kim Nielson and a gang member on charges of racketeering. Their case has been forwarded to the public prosecutors.

The DSI is planning to arrest those who encroach on forest land and state officials who conspired to issue land title deeds on forest reserves.

A consultant firm was found to be the key player in the scam.

The firm operates by registering companies with foreigners holding 49 per cent in the company and Thais - who are the firm's employees - 51 per cent. However, the firm exploits legal loopholes by allowing foreigners to hold "preferred shares" and are entitled to a bigger vote than are the Thai shareholders. The foreign shareholders, therefore, have control over the company and can buy land in tourist-oriented areas like Koh Samui, Phuket and Chiang Mai.

Scandinavian police tipped off Thai police that foreign mafia members had become owners of major real estate and resorts in tourist towns. The consultancy had billions of baht transferred into their account and then helped its clients who wanted to buy land avoid paying taxes through legal concealment.

Source: The Nation - 2 February 2007

Alleluyah! But I think they also should do a little digging into those foreigners who were buying the land. They might find some "interesting" characters and some dirty money.

DSI approves prosecution of gang that duped foreign land-buyers

The Department of Special Investigation (DSI) yesterday ruled to prosecute a legal consultancy and a foreign gang that duped foreigners into buying land through Thai nominees in major tourist destinations.

The ruling was made at yesterday's meeting chaired by Justice Minister Charnchai Likhitjittha after the arrest of Kim Nielson and a gang member on charges of racketeering. Their case has been forwarded to the public prosecutors.

The DSI is planning to arrest those who encroach on forest land and state officials who conspired to issue land title deeds on forest reserves.

A consultant firm was found to be the key player in the scam.

The firm operates by registering companies with foreigners holding 49 per cent in the company and Thais - who are the firm's employees - 51 per cent. However, the firm exploits legal loopholes by allowing foreigners to hold "preferred shares" and are entitled to a bigger vote than are the Thai shareholders. The foreign shareholders, therefore, have control over the company and can buy land in tourist-oriented areas like Koh Samui, Phuket and Chiang Mai.

Scandinavian police tipped off Thai police that foreign mafia members had become owners of major real estate and resorts in tourist towns. The consultancy had billions of baht transferred into their account and then helped its clients who wanted to buy land avoid paying taxes through legal concealment.

Source: The Nation - 2 February 2007

Is the other gang member Crispin smith? as i here he is still in the bkk hilton

How was the foreign buyers duped? Sounds like they did exactly what expected, 49/51 but higher vote-value...

Could this be the spur for one of the ammendments to the Foreign Business Act announced last month?

Could this be the spur for one of the ammendments to the Foreign Business Act announced last month?

No, definitely not.

This happen to people who are not "clean"

Till today e single "normal" person who acquired house and land

with proper advises and proper documents have almost nothing to be scare about.

Tomorrow ... who knows....

but I have still confidence (hope so) that the Thai Govt. does not intend punish

single small private foreign, but unreasonable developer and builder...

only my opinion.

Cheers

The DSI is planning to arrest those who encroach on forest land and state officials who conspired to issue land title deeds on forest reserves.

that might be the clue why this consultancy firm was caught - they were bribing local land officials to write title deeds to companies set up/own by the unsuspecting foreigners. The land legally still belongs to the state and can be re-forested. That can mean annihilation of the deeds, even if all taxes were paid, and confiscation of the land and property without any compensation.

those foreigners had the right to set up companies and buy the land - but were duped into illegal buy by the layers firm co-operating with the corrupted officials. Thai investors, with their local knowledge, would see through the scam - naive foreigners were just lured by the prospects of investing some untaxed/black market money. Easy come - easy go.

now, government might want to sell those properties on the market, and if on a large scale and at this same time, it would affect property market in the whole lacal area.