Irishmen Get Suspended Sentences In Thailand

[george]

BANGKOK BOILER ROOM SCANDAL:

Irishmen get suspended sentences in Thailand

Full story here: http://www.thaivisa.com/index.php?514&backPID=10&tt_news=722

BANGKOK: -- Three Irishmen were given suspended prison sentences in Thailand today for conducting a securities business without a licence.

The three-year-old case involved the sale of questionable shares to unsuspecting investors.

The three Irishmen, three Britons, and one Australian were given suspended two-year prison sentences and fined after their trial in Bangkok.

The seven members of the so-called Brinton Group were arrested in July 2001 after police raided their operation – known as a “boiler room” for the high-pressure sales tactics employed there.

They were accused of luring at least 39 Australians and dozens of others, including Americans, to invest in questionable or non-existent stocks of companies in the United States and Canada.

A further 73 others were also arrested with them but were freed and deported.

They were initially charged with fraud for allegedly selling non-existent stocks, but prosecutors dropped the charges without explanation. However, the charge of conducting unlicensed securities business remained.

The Irish defendants were Paul Mary Hickey, John Martin Kealy and Ronan Joseph Murray.

Their activities were investigated by the Australian Federal Police and the FBI following complaints by securities regulators in Australia, New Zealand and Hong Kong.

Australian and US agents joined Thai police in the raid.

Source: Agencies 2004-06-10

Full story here: http://www.thaivisa.com/index.php?514&backPID=10&tt_news=722

[george]

Brinton boiler-room bosses convicted

BANGKOK: -- Bosses of the Brinton Group and other controversial securities trading firms were convicted yesterday in the Bangkok South Criminal Court of operating illegal "boiler rooms" in Thailand.

Seven foreigners, including Irishman John Martin Kealy, were found guilty of running "unlicensed securities businesses [boiler rooms]" - huge investment scams conducted from call centres in Bangkok on people in Australia and other countries across Asia and the Pacific.

The Securities and Exchange Commission (SEC) filed a criminal complaint against seven defendants on July 26, 2001.

They were John Kealy, Scott Campbell Fisher, Paul Mary Hickey, Ronan Joseph Murray, Steven Hooper, Jason Garrick Rich and Adrian Robert Wallis.

An SEC statement yesterday said: "The Bangkok South Criminal Court convicted all seven defendants and sentenced each of them to two years jail and a fine of Bt200,000, but the jail term has been suspended."

Kealy and his colleagues were charged with "conducting unlicensed securities businesses (boiler rooms) in Thailand, which is a contravention of Section 90 of the Securities and Exchange Act BE 2535".

"These defendants, claiming that their offices were located in Thailand as well as in many countries, had induced overseas investors, mostly Australians, into making investments in securities of companies in USA and Canada.

"Different names of the Brinton Group, Sigama Capital Management, Lincoln Financial, and e.go trade incorporated, were used."This had not only caused damages to investors but also to the reputation and image of Thailand."

The commission said yesterday's conviction "reflects efficiency of Thailand's criminal justice administration in bringing wrongdoers into justice. Australian authorities have said thousands of investors were conned into sending their savings abroad, mainly to bank accounts in Hong Kong.

Angry investors in the Brinton Group banded together to form an association, which attempted to assist police in Thailand to recover an estimated 300 million Australian dollars (Bt8.4 billion) which people said they had lost.

Kealy - who runs the Dubliner and Irish Exchange pubs in central Bangkok - and his colleagues claimed the Brinton Group lost most of the money in the US stock slump.

A previous attempt to prosecute the Brinton Group heads was dropped by prosecutors, who complained that Thai police had failed to gather sufficient evidence to convict them of "complex and sophisticated" fraud charges.

--The Nation 2004-06-11

[Khun ?]

Keep your money other than what you need out of Thailand. In my opinion and experience there is no company or offshore funds worth the time of day.

Use experienced advisors back home where you have legal rights. Thailand

is a haven of conmen and scam artist with its share of pedo's running around.

Far to many Farangs getting away with scams. It is enough to deal with the locals.

Anyone in Thailand trying to get you to do something with your money get away from them. They are not your friends and nieghbors you grew up with.

[Dickie]

Just like the ebay scam that wanted you to supply your credit card details, including the SCV number on the back of it, some people will just go ahead and do what they're told to do. Millions of years of evolution to produce the human being and we wind up with sheep.

[LoongJohn]

Millions of years of evolution to produce the human being and we wind up with sheep.

Sheep have got more sense than to hand over thousands of dollars to a complete stranger on the strength of an unsolicited phone call!

[castelleone]

No big loss to get rid of these guys. They literally have "no business" here.

[penelope]

Look at them...losers, all of them.Medicore failures, doing whatever they can to be in LOS with their slapper whore teeruks because they don't have the ability,nause,skill,status to be legitimate.It's good to see that the effluent of farang society in LOS are getting flushed down the toilet.Irrelevant lifeforms.There got it out , I loath people like this.

[Up2U]

Look at them...losers, all of them.Medicore failures, doing whatever they can to be in LOS with their slapper whore teeruks because they don't have the ability,nause,skill,status to be legitimate.It's good to see that the effluent of farang society in LOS are getting flushed down the toilet.Irrelevant lifeforms.There got it out , I loath people like this.

Yet the chief among them was running two successful bars, the others were fairly high-visibility people.

Did you know any of them? Were you one of the scammed? The operation would have been running still, but for a lurch in the US market. This is the one thing they hadn't counted on - after the turn-of-the-millenium slump, another slump right on it's heels.

I have no sympathy for them, they have been held here for three years, not knowing their fate. But I do not spew forth such garbage as has been posted here.

[penelope]

Did you know any of them?

Were you one of the scammed?

a --> gladly, no. I associate with people who DON"T engage in fraud/ crime etc... Own 2 bars...haha....so <deleted>**en what.They are street sh*t criminals.There are 2 types of expat businessmen in LOS. As is evident by their criminal acts, I would put them in the "street gutter" category.

b --> no, but I empathise with the victims anger (if it wasn't already evident).

This ain't garbage kid...it is an extended diatribe for sure, my opinion only, but I know there are readers who also agree.

[astral]

It is good to see that the Thai legal system takes fraud so seriously.

This quick decisive action should do a lot to boost the stock market

and help raise the level of the Baht against foreign currencies.

Duh!!

Remember the Golden Rule.

Never invest more in Thailand, than you are prepared to walk away from!!

[mai_ra_bu_cheu]

Look at them...losers, all of them.Medicore failures, doing whatever they can to be in LOS with their slapper whore teeruks because they don't have the ability,nause,skill,status to be legitimate.It's good to see that the effluent of farang society in LOS are getting flushed down the toilet.Irrelevant lifeforms.There got it out , I loath people like this.

Wow, sounds like you resent Thai women, I wonder why.

I new lots of these boiler guys, and although I think what they were doing was terrible, and lots of them were the worst kind of scum, there were a few decent, nice guys amongst them. How can they be decent when they are doing this kinda shit - I don't know. There were some in my apt. a efw years ago, and some I knew got deported. I was pleased in most cases as they deserved it, maybe more.

There was one guy who was married with a child who got into some hard times and took the job as a last resort. Amazing what one can do when facing starvation.

You have obviously never been in that situation. You are not a failure, so you must be a success? You feel the need to show your superiority over these unfortunates. What are you lacking? What status do you have? Kindergarten teacher?

Yes, I agree, they were all losers. They deserved what they got. The leaders should have got more, in my opinion.

Who were the real losers? Ozzies handing there money over - not as stupid as they sound, some of these guys were good at selling the scam.

[simon43]

It's commented that the Thai authorities take fraud seriously. Do they??? These guys get to pay a measly 200,000 baht fine and walk away...Think about how much money they have scammed from (greedy) but maybe naive people?

That 2 year jail term should not have been suspended.

Simon

[penelope]

There was one guy who was married with a child who got into some hard times and took the job as a last resort. Amazing what one can do when facing starvation.

Yeh, better to inflict suffering on another family, rather than his own.Coward.

Squirrels have enough foresight to stash nuts away for the winter.Is it too much to ask of a human with larger brain size. Natural selection is a beautiful thing.

You have obviously never been in that situation. You are not a failure, so you must be a success?

Yes I am a rather successful little squirrel.

[Khun ?]

Well maybe some of the people that got scammed will file charges in their home country against the culprits or the country these people are from. That may at least keep them from ever getting a passport again and some jail time would be most deserving. Many of these low lifes will do it again in another place. when you start dicking someone elses life around to benefit yourself you deserve the worst that happens to you. I would imagine some will end up with some pay back on returning home at some time in the future and deservedly so. What comes around goes around.

Thailand has squirmed its way out of its responsibilty to the rest of world again so a few public officials and police could get some kick backs may even a couple free brews at the pub. What a disgrace on the Thai people.

Doesn't Thailand have a law for people that handle other peoples money on investments must be licensed to do so. Many of these so called investment companies in Thailand have no business putting their hands on other peoples money. About time Thailand enforced or put laws in place that makes honesty

integrity a must. When word is out that anything can happen to you if a bribed is paid to the local police to extort money from you people will not bring money in to thailand anymore. When you have foreigners in your country doing this it is getting very bad.

[george]

Boiler room boss claims he is being threatened by Aust 'negotiator'

BANGKOK: -- An Irish businessman convicted last week of operating an illegal securities brokerage, or "boiler room", in Bangkok voiced fears about alleged threats against him and his family.

John Kealy filed a formal complaint with Australian Federal Police officers at the Australian Embassy, accusing an Australian "negotiator" based in Hong Kong of extortion and intimidation.

Kealy said the man was threatening him and his family in a bid to get US$15 million (Bt600 million) returned to investors in Australia.

The Irishman was one of seven foreigners who received a two-year suspended jail term and a fine of Bt200,000 in the Bangkok South Criminal Court on Thursday.

Kealy, 38, presented Australian police with copies of extortion notes he alleges were delivered to him in Bangkok and his parents in Ireland. The Brinton Group was the subject of a high-profile raid by the police and other authorities in July 2001.

Thai police filed criminal fraud charges against Kealy and six other heads of the company, and kicked more than 80 other employees out of the country.

The businessman and his colleagues, including Sydney man Scott Fisher, were accused by the Securities and Exchange Commission (SEC) of luring dozens of Australians and people in other countries to invest in questionable or non-existent stocks outside Thailand. Such scams are called "boiler rooms" after a movie of that name, which revealed the pressure tactics and sophisticated tricks often used on potential investors.

Former SEC chief Prasarn Trairatvorakul claimed the Brinton Group had turnover of nearly Bt7 billion at the time. Thai police were given funds to visit Australia to speak to investors who had lost money.

But, in a major embarrassment to the government, the fraud charges were dropped by the Attorney General's Office in July 2002. Prosecutors said they were given insufficient evidence for convictions.

The collapse of the SEC charges was front-page news and sparked strong criticism of Thailand's pitiful prosecution rate for serious economic crimes.

The backdown spurred the formation of the Australian Brinton Group Recovery Association to try to retrieve investor funds through court action in Hong Kong, where many Australians were directed to send funds.

Kealy detailed his side of the Brinton Group saga and the alleged threats in an interview in Silom - in one of two Bangkok Irish pubs that he said he does not own - attended by his lawyer and associates. He provided copies of the extortion notes, which he says followed the dismissal last July of legal action by Australian investors against the Brinton Group by a court in Hong Kong.

The Brinton Group had raised "about US$45 million in venture capital", Kealy said. The group's collapse stemmed from several factors, he argued - the Nasdaq slump and the SEC in Thailand not releasing more than 2000 stock certificates confiscated during the police raids in July 2001.

"They wanted these companies to go out of business," he said, adding, "everything went against us."

Kealy said he believed the Australian negotiator had received "non-refundable" payments of up to $1000 each from investors in Perth and elsewhere to try to recoup money lost to the Brinton Group. The man also stood to gain 15 per cent of any money returned because of the demands, he alleged.

Contacted in Hong Kong, the Australian man "strongly denied" threatening Kealy or his family, but admitted he was a negotiator on "behalf of Australian victims of boiler rooms" and that he has "communicated the amount of compensation required by those victims" in several conversations with the Irishman.

He said in an email: "The Australian Federal Police have spoken to me about the claims but as there is no real evidence or substance to these claims, no action was taken. I have no involvement in threats to Kealy's family, that is ridiculous."

--The Nation 2004-06-13

[randyotter]

these investor deserve all they get. who in thier right mind would give somone several 1000'sUSD's on the back of an unsolicited phone call on the promise of fantasticly high tax free returns?

answer, greedy people who deseve to be ripped off.

[Khun ?]

these investor deserve all they get. who in thier right mind would give somone several 1000'sUSD's on the back of an unsolicited phone call on the promise of fantasticly high tax free returns?

answer, greedy people who deseve to be ripped off.

Like saying if you got a deffective product you deserve it you bought it.

I hope the culprits end up in nonbattery driven wheel chairs, it will not be so easy for them to get around to con someone else. Many of these off shore investment firms around Thailand a monkey throwing darts could do as well. These polished sells pitches are just that. These people running around foreign countries trying to get their hands on other foreigners money should not be trusted. Why didn't they do the service in their own country where the pay is much higher and liability much more protective of the customer. They are washouts for the most part.

Stay away from anyone interested in your money for a service that is optional.

Use someone back home that is recommended by people you know and trust.

Like Randyrotter maybe a buss will run over him then we can say he should not of been there. As he sayss anyone working for more tan minimum wage is greedy and should not be paid. What a loser.

[konangrit]

I have little sympathy for any victims of this crime. They could have invested their money in their own countries in low risk investments for modest gains. Instead they chose a high risk investment, in a company that they had never heard of before, which is based in a third world country, in the hope of large profit margins. Well, guess what? They lost their high risk investment, they made a gamble and lost.

Penelope, I would hardly consider a few foreigners who managed to raise ฿8.4 Billion as doing whatever they can to stay in LOS. They were however clever enough to choose a country that is so corrupt that they somehow managed to escape a prison sentence for a serious financial crime like this.

A much stronger sentence in this case would send out a clear message to any other criminals considering to do this to look elsewhere. Unfortunately the message that the sentence does send out is for anyone considering to invest in Thailand should look elsewhere. The result being that there will be more gullible people hoping to make a quick buck being fleeced out of their money by criminals out to make a quick buck. Meanwhile most intelligent investors will continue to invest outside of Thailand.

[penelope]

Penelope, I would hardly consider a few foreigners who managed to raise ฿8.4 Billion as doing whatever they can to stay in LOS.

That jibe was more directed to the losers who were the "cold callers" , rather than the losers who conceived/ran the show.

[philmac]

They were not done for fraud. They were done for operating a "financial services" company without a license. That's why the sentences were light.

The more serious case of fraud was heard last year if I recall. And they were found not guilty because the prosecutor's dog chewed up all the vital evidence.

It was the same prosecutors dog that chewed up all the vital evidence in the chalerm murder case, and countless other cases where those who finally reach the dock have enough money to be not guitly.

Everytime this happens, I'm reminded of that expressway toll collector a couple of years back. The poor sod got 40 years jail for raking off around Bt70,000 from toll fees over about 2 years.

No prosecutors dog in that case, just ruff justice.

[farangene]

They were not done for fraud. They were done for operating a "financial services" company without a license. That's why the sentences were light.

Every report I have seen on this case indicates that the perps "got off" with a relatively small fine and a suspended jail sentence.

Does anyone know if they will be deported as well??

[warriors]

I am glad to see there was only one New Zelander in the 80 + fellows. You do not need to guess were most came from and now they wil return to there land of sunshine and mussy peas

Many be the Thai Gov will look more closley at the bulldog passports in future.

Just a thought.

[konangrit]

I am glad to see there was only one New Zelander in the 80 + fellows. You do not need to guess were most came from and now they wil return to there land of sunshine and mussy peas

Many be the Thai Gov will look more closley at the bulldog passports in future.

Just a thought.

Most of the 80+ fellows were deported nearly 3 years ago. It wouldn't surprise me if a fair proportion of these are already back in the Kingdom.

[marquess]

Most of the 80+ fellows were deported nearly 3 years ago. It wouldn't surprise me if a fair proportion of these are already back in the Kingdom.

[/i]I thought that deportation meant that one was automatically blacklisted?

[raybkk]

Yes they are back. And since 1.5 years ago the underground is running on full speed again. However very low profile. I dont understand why nobody stops them from taking more than US 150000.- a day.

However regarding some of peoples comments on the topic I must say that not all of you really understand what went realy on. And.... I am not one that worked for them who is already back in the Kingdom!

If they realy where that guilty as they belived in the first place, why didn't they keep the accounts in Hong Kong frozen?!

[konangrit]

Most of the 80+ fellows were deported nearly 3 years ago. It wouldn't surprise me if a fair proportion of these are already back in the Kingdom.

[/i]I thought that deportation meant that one was automatically blacklisted?

I believe that to generally be the case too. Still, I wouldn't be surprised if a fair proportion of those deported have found a way back into the country.

[randyotter]

khun ? you're the loser.

I will say it again, anyone who gets a cold call from a financial specialist they have never heard of, promising them large, tax free returns on their money deserves whats coming to them. They are doing it for one reason, greed. That is how these companies keep coming back time and time again. And they get away with it as they pay the boys in brown substantial amounts of money to get away with it.

[marquess]

will say it again, anyone who gets a cold call from a financial specialist they have never heard of, promising them large, tax free returns on their money deserves whats coming to them. They are doing it for one reason, greed. That is how these companies keep coming back time and time again. And they get away with it as they pay the boys in brown substantial amounts of money to get away with it.

No! They don't deserve what's coming to them, but the cheats do. Though as you said one would have to be damned and I mean damned stupid! To fall for such a thing. Afteral if is is so good why don't you make the money for yourself and leave me alone?

[40theives]

I read once in BKK Post about how 50 percent of money raised in the Kingdom was "under the table". That means every other building is built with money gained through illicit means. It blew my mind at the time, but after seeing how money gets raised here with drugs, prostitution, corruption, counterfeiting and fraud - it's not really a surprise anymore.

All of this does not happen without committed individuals. Just as there are the Jack Welshs' and Steve Jobs' of the proper business world, there are underground leaders with similar motivation, drive and leadership ability. The difference is that they are unable to have their success told on MSNBC.

[dr_Pat_Pong]

The clients are certainly dumb, and certainly let their greed cloud the issue, but the promoters are guilty of criminal behaviour and deserve much more than they got.