Police break up network aiding foreigners to stay in Thailand

[webfact]

Foreigners, accused of operating a business without a permit, are summoned at Central Investigation Bureau in Bangkok, Thailand, Friday, May 31, 2024. (AP Photo/Sakchai Lalit)

 

Thai police have dismantled a vast network that illicitly assisted foreigners, primarily Russians, in securing long-term stays in Thailand through fraudulent means involving shell companies, officials reported on Friday.

 

The operation, spearheaded by a 45-year-old Russian woman and a Thai accomplice, facilitated foreign residency by setting up bogus companies. This network, based in Phuket, involved the Thai woman being listed as an executive or shareholder in over 270 companies. Under Thai law, while foreigners can operate businesses, they must do so as part of a joint venture with Thai nationals, holding no more than 49% ownership to protect local economic interests.

 

The fraudulent scheme worked by listing foreigners as business shareholders or employees of these shell companies, thus enabling them to obtain work permits. Commander Puttidej Bunkrapue of the Economic Crime Suppression Division detailed how this service circumvented legal requirements for business operations and work permits.

 

Foreigners, accused of operating a business without a permit, are summoned at Central Investigation Bureau in Bangkok, Thailand, Friday, May 31, 2024. (AP Photo/Sakchai Lalit)

 

The crackdown led to charges against 98 foreigners, including 68 Russians, accused of operating businesses without proper permits. This offense is punishable by up to three years in prison and a fine of one million baht (£22,000). Additionally, 37 Thais have been implicated in related offenses.

 

This illicit network is believed to have been active since 2016, with a notable surge in clients following Russia's invasion of Ukraine in 2022. Chief investigator Krit Woratat confirmed that over 50 foreigners had been officially charged by Friday.

 

Phuket, a well-known tourist hotspot, especially popular among Russians, has seen an influx of Russian visitors, with over 90,000 arrivals from 2019 to early 2024. Furthermore, the number of companies registered under Russian names in Phuket has dramatically increased, with over 1,600 registrations from 2023 to early 2024, compared to about 30 annually from 2016 to 2022.

 

This story underlines the significant challenges authorities face in maintaining legal compliance amidst increasing foreign interest in residency and business opportunities in Thailand.

 

-- 2024-06-01

 

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[webfact]

Phuket Police Dismantle Extensive Nominee Shareholder Network in ‘Operation Nominee Sweep
By Goongnang Suksawat

 

 

PHUKET, Thailand – In a sweeping crackdown dubbed ‘Operation Nominee Sweep,’ the Central Investigation Bureau (CIB) has arrested a total of 104 individuals, comprised of 67 Russian nationals and 37 Thais, for their involvement in a vast network of companies with foreign shareholders.

The operation, led by CIB Commissioner Lieutenant General Jirabhop Bhuridej, was disclosed to the media on Friday, May 31st. The investigation unearthed a staggering 1,603 companies registered with Russian shareholders since 2023, marking a fiftyfold increase from the annual average of 30 companies registered yearly recorded between 2016 and 2022.

 

The probe initially targeted a woman identified only as Mrs. Iana, a 45-year-old Russian national who has resided in Thailand legally since 2012. Mrs. Iana was found to be a shareholder in nine companies, including seven real estate firms and two service and tour operators, with a combined capital of 38 million baht. Furthermore, she is the owner of luxury condominiums and apartments valued at 900 million baht across three projects in Phuket.

 

 

Full story: THE PHUKET EXPRESS 2024-06-01

 

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[soi3eddie]

23 minutes ago, webfact said:

Thai police have dismantled a vast network that illicitly assisted foreigners, primarily Russians, in securing long-term stays in Thailand through fraudulent means involving shell companies, officials reported on Friday.

17 minutes ago, webfact said:

The fraudulent scheme worked by listing foreigners as business shareholders or employees of these shell companies, thus enabling them to obtain work permits. Commander Puttidej Bunkrapue of the Economic Crime Suppression Division detailed how this service circumvented legal requirements for business operations and work permits.

 

...but gave no specific details in the story. Other than the business must not have more than 49% foreign ownership. A very greay area as to what is "fraudulent" or "bogus". The companies were formed as per the rules by all accounts (or they wouldn'y have been formed) but the authorities don't like it. OK the Thai lady has interests in 270 companies. Maybe she's just very successful. It is clear that "authorities" do not like what is happening but to call it "fraud" is a stretch. Who is actaullay being defrauded and losing their money? As usual the story is light on specifics.

 

[Artisi]

57 minutes ago, soi3eddie said:

 

...but gave no specific details in the story. Other than the business must not have more than 49% foreign ownership. A very greay area as to what is "fraudulent" or "bogus". The companies were formed as per the rules by all accounts (or they wouldn'y have been formed) but the authorities don't like it. OK the Thai lady has interests in 270 companies. Maybe she's just very successful. It is clear that "authorities" do not like what is happening but to call it "fraud" is a stretch. Who is actaullay being defrauded and losing their money? As usual the story is light on specifics.

 

"Light of specifics", is that anything new? 

 

[stoner]

1 hour ago, soi3eddie said:

but the authorities don't like it.

 

they had no problem signing off on the formation of these companies and taking the fees. 

[ezzra]

This is not a secret that with the right pay and connection you can work the immigrations system pretty

well as long as everyone is in on it and happy, however, the minute something goes wrong or it is being over done

it wouldn't take much for the whole rort to be exposed and people get caught and some will go to jail or

get kicked out the country..

[rocketboy2]

Poop in the pants time for a few ex-pats.

[hotchilli]

2 hours ago, webfact said:

The operation, spearheaded by a 45-year-old Russian woman and a Thai accomplice, facilitated foreign residency by setting up bogus companies. This network, based in Phuket, involved the Thai woman being listed as an executive or shareholder in over 270 companies. Under Thai law, while foreigners can operate businesses, they must do so as part of a joint venture with Thai nationals, holding no more than 49% ownership to protect local economic interests.

Handsomely paid for the use of her name no doubt....

I wonder if they will track down all the dodgy Russians who have benefited from these services and nail the Thai lady for aiding and abetting.

[hotchilli]

2 hours ago, webfact said:

The crackdown led to charges against 98 foreigners, including 68 Russians, accused of operating businesses without proper permits. This offense is punishable by up to three years in prison and a fine of one million baht (£22,000). Additionally, 37 Thais have been implicated in related offenses.

In a way I don't blame the Russians, but the blame must lay with the Thais that are offering these services for a handsome fee.

[Jonathan Swift]

That's 68 Russians out of 90,000. Nice start, only 89,932 to go. 

[stoner]

2 minutes ago, hotchilli said:

In a way I don't blame the Russians, but the blame must lay with the Thais that are offering these services for a handsome fee.

 

and the government themselves accepting all the fees. 

[Jonathan Swift]

3 minutes ago, hotchilli said:

In a way I don't blame the Russians, but the blame must lay with the Thais that are offering these services for a handsome fee.

It's a shame they can't simply be treated as refugees from an oppressive dictatorship. I'm sure they'd be willing to pay for that privilege, rather than pay crooked Thai people.

Edited May 31 by Jonathan Swift

[stoner]

Just now, Jonathan Swift said:

That's 68 Russians out of 90,000. Nice start, only 89,932 to go. 

 

so you want all russians kicked out just because ? amazing. 

[hotchilli]

Just now, stoner said:

 

and the government themselves accepting all the fees. 

Local administrative officials must be signing off on these businesses to register them..

then when it doesn't suit, it's suddenly illegal.

[hotchilli]

1 minute ago, Jonathan Swift said:

It's a shame they can't simply be treated as refugees from an oppressive dictatorship. 

You do know how Thailand treats refugees.... 

[stoner]

1 minute ago, hotchilli said:

Local administrative officials must be signing off on these businesses to register them..

then when it doesn't suit, it's suddenly illegal.

 

hey nat did you also notice an abnormal amount of russian owned businesses opening up with this same lady over and over. 

 

not sure nong did they use blue pen or not ? 

[Zack61]

These are probably little fish. If a wider net was cast I wonder who else would be redeemed. I don't believe this operation could have thrived for so long without the help of some bigger fish in positions able to aid and abet the process.

[IamNoone88]

There should be no valid reason that a foreigner cannot own 100% of a bonafide company that is usually 100% foreigner financed. This 51/49% rule is totally without merit. 

[Deputy7]

2 hours ago, webfact said:

Foreigners, accused of operating a business without a permit, are summoned at Central Investigation Bureau in Bangkok, Thailand, Friday, May 31, 2024. (AP Photo/Sakchai Lalit)

 

Thai police have dismantled a vast network that illicitly assisted foreigners, primarily Russians, in securing long-term stays in Thailand through fraudulent means involving shell companies, officials reported on Friday.

 

The operation, spearheaded by a 45-year-old Russian woman and a Thai accomplice, facilitated foreign residency by setting up bogus companies. This network, based in Phuket, involved the Thai woman being listed as an executive or shareholder in over 270 companies. Under Thai law, while foreigners can operate businesses, they must do so as part of a joint venture with Thai nationals, holding no more than 49% ownership to protect local economic interests.

 

The fraudulent scheme worked by listing foreigners as business shareholders or employees of these shell companies, thus enabling them to obtain work permits. Commander Puttidej Bunkrapue of the Economic Crime Suppression Division detailed how this service circumvented legal requirements for business operations and work permits.

 

Foreigners, accused of operating a business without a permit, are summoned at Central Investigation Bureau in Bangkok, Thailand, Friday, May 31, 2024. (AP Photo/Sakchai Lalit)

 

The crackdown led to charges against 98 foreigners, including 68 Russians, accused of operating businesses without proper permits. This offense is punishable by up to three years in prison and a fine of one million baht (£22,000). Additionally, 37 Thais have been implicated in related offenses.

 

This illicit network is believed to have been active since 2016, with a notable surge in clients following Russia's invasion of Ukraine in 2022. Chief investigator Krit Woratat confirmed that over 50 foreigners had been officially charged by Friday.

 

Phuket, a well-known tourist hotspot, especially popular among Russians, has seen an influx of Russian visitors, with over 90,000 arrivals from 2019 to early 2024. Furthermore, the number of companies registered under Russian names in Phuket has dramatically increased, with over 1,600 registrations from 2023 to early 2024, compared to about 30 annually from 2016 to 2022.

 

This story underlines the significant challenges authorities face in maintaining legal compliance amidst increasing foreign interest in residency and business opportunities in Thailand.

 

-- 2024-06-01

 

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[Deputy7]

Russian Mafia!!!

[ChipButty]

1 minute ago, Deputy7 said:

Russian Mafia!!!

How do you know that?

[Andrew23]

Ukrainian citizen is here. All russians who run away from the dictator and his war must be welcomed in every country. This would help to stop the war in Ukraine.

[Presnock]

1 hour ago, ezzra said:

This is not a secret that with the right pay and connection you can work the immigrations system pretty

well as long as everyone is in on it and happy, however, the minute something goes wrong or it is being over done

it wouldn't take much for the whole rort to be exposed and people get caught and some will go to jail or

get kicked out the country..

you mean like "agents"?

 

[Presnock]

29 minutes ago, IamNoone88 said:

There should be no valid reason that a foreigner cannot own 100% of a bonafide company that is usually 100% foreigner financed. This 51/49% rule is totally without merit. 

other than Thai law which is very specific and most likely will no change in our lifetime

[Thumbs]

How is this possible without at least one immigration officer involved ?

[jippytum]

Tip  of the iceberg compared to bogus bank deposits to secure visa extensions. Agents and immigration working together. 

[kaufmanski]

Sounds like she didn't want to spread the wealth 

[Dont confuse me]

You could do this in Hua Hin years ago the purpose was for house purchase.

Same deal solicitor sets up a bogus company your a 49% share holder and 3 'ghost ' Thais would also be share holders at 17% each (provided you with some comfort knowing your the major share holder) .

The property became your company house. 

You still had to have the 800k in the bank. But you could 'legally ' stay.

Happy days.

[ChipButty]

It's engrained in Thai society you are not going to stop it, I've been around here long enough to see plenty of it going on, where do you start? Land department then you can go to the business development department and on the same soi is the labour department give them a visit, 

You want a yellow book? now there's a story in Phuket, 

I've seen this farang wait nearly 7 month for a work permit, obviously he didn't slip a few quid in the folder. 

[klauskunkel]

49 minutes ago, IamNoone88 said:

There should be no valid reason that a foreigner cannot own 100% of a bonafide company that is usually 100% foreigner financed. This 51/49% rule is totally without merit. 

It's not a merit based society...