Police break up network aiding foreigners to stay in Thailand

[Ironmike]

It's funny how much crime is being done by the Russians and how quick the government is looking the other way and still letting them come in and do what ever they want

[TheFishman1]

She’s been living in Thailand, legally since 2012 wow and she has $900 million worth of luxury condos wow and she’s involved with all these companies with another person that is a tiny nationality. The whole thing smells fishy to me. This government will allow these Russians come in destroy the country destroy the legal system and nothing is really done about it. What a shame. TIT.

[jesimps]

1 hour ago, stoner said:

 

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

Yes please!

[ezzra]

39 minutes ago, Presnock said:

you mean like "agents"?

 

Yes, and any one in between on both side of the devid, It's a big business out there and it has been so for many years already, as those on the other side also looking to supplement their government's salary with some extra income and it's goes all the to the top...

Edited June 1 by ezzra

[wensiensheng]

3 hours 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.

 

I think that the companies did no actual business other than holding a condo in which the Russian resided. And yet the Russian obtained a work permit via the company so as to be able to stay in Thailand.

[stoner]

9 minutes ago, jesimps said:

Yes please!

 

ok thanks for clearing that up. any other countries on your list emperor ? 

[Expat Tom]

THE RUSSIAN ARE COMING< THE RUSSIANS ARE COMING> THE RUSSINS ARE COMING!

When you sleep with dogs you will get fleas. Russia in one of the most corrupt countries on the planet.   According to 

'Transparencty.org' Russian ranks 141st on the world corruption index. Please! Don't take my word for it. Check it out for yourself.  One who possesses any critical thinking skills might have concluded that when you open the doors wide for people from an internationally acknowledged  corrupt country you might get more than a few criminals is the process.

 

However, this is nothing new. Walking Street in Pattaya has quite a few bars/ clubs  that advertise in glowing neon lights,

Russian Girls! Russian Dancers! ! Long legged blond Russian "ladies" stand in the street and beckon folks inside.

Exactly what sort of Visa or Working permit to these Russian "ladies of the night" have that allows  them to work in Thailand in jobs that Thai nationals are qualified to do. How many brown envelopes are passed out to allow these businesses to operate?

 

The last time I wrote a post about this I was threatened in the comments, presumably by Russian criminals or by 

Thai officials who receive the  monthly brown envelops. 

 

THE RUSSIANS ARE COMING> THE RUSSIANS ARE COMING> 

BTW, do you know why the Russians are in Thailand? BECAUSE THAILAND IS ONE OF THE VERY FEW COUNTRIES 

WHO ALLOW ....EVEN ENCOURAGE....THEM TO COME.

Every crime that is committed in Thailand by a Russian can be laid at the feet of the monied people in Bangkok who make these stupid decisions. Don't blame the criminal when you leave your doors unlocked.   

[pomchop]

35 minutes ago, jippytum said:

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

yep and one of these days some agents are gonna piss off the wrong persons and a simple check of bank accounts showing that the 800 k baht went in and out the same day to get the visa....then the hammer comes down,visa cancelled, deportation or some charge against farang ....agent will be taught that more brown envelopes must be distributed to proper people. Agent learns lesson , farang gets the shaft.

[wensiensheng]

“Thai police have dismantled a vast network that illicitly…..”

 

I wouldn’t call one Russian woman with 100 marks a vast network exactly. There are probably others out there doing the same thing.

 

the crime here is listing Russians as employees of company’s so that they could get work permits, when in reality the companies did no business.

[Excogitator]

4 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

 

Get our Daily Newsletter - Click HERE to subscribe

 

 

 

Excellent. Keep up the good work.

[oldestswinger]

24 minutes ago, Expat Tom said:

Russia ranks 141st on the world corruption index

Thailand does pretty well at 108.

[JBChiangRai]

There are many foreigners who have these 49% companies to own real estate.

 

• The first mistake is taking 49%, why get hung up on that number? It helps you be targeted.
• The second mistake is having no relationship to the Thai shareholders 
• The third mistake is the Thai shareholders having no involvement day to day with the business.
• The fourth mistake is the company doesn't trade.

 

If you are challenged on these points, how can you defend them? An official questioning a nominee isn't going to go well.

 

There is another mistake people make with their companies, they don't diarise the expiry date of the ID cards from their Thai nominees.  Typically, they hold an undated signed document to remove the nominee together with a signed copy of their ID card, which expires in under 7 years (on average after 3.5 years), so the documents become useless.

 

I am surprised corrupt officials don't see these as easy pickings for blackmail, perhaps they don't have the connections to identify them.

[Taboo2]

Tip of the iceberg.

[Hellfire]

 The same type of “crime” is executed by thousands of foreigners all over Thailand (not only Russians). I am pretty sure that many users of this forum participated and still participate in this kind of schemes. I wonder if those are the same people who are posting “russian mafia” messages in this thread? What level of hypocrisy is that?

 

 

Edited June 1 by Hellfire

[newbee2022]

5 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

 

Get our Daily Newsletter - Click HERE to subscribe

 

 

 

God sake, this time hopefully no Brits involved. Fingers crossed😂

[Walker88]

1 hour ago, Presnock said:

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

American citizens are allowed to own 100% of a business per the Treaty of Amity. The Treaty was first signed in 1833, and extended again in 1966. Most law firms in Thailand know how to register a company under the Treaty.

 

Elsewhere, the numbers as they appear in the article seem odd. 270 companies would provide 'shelter' for more than 68 Russians, so likely there is more to come. Also, any company employing a non-Thai/non-ASEAN (who has a registered/legal Work Permit) must employ 4 Thai nationals for every foreigner with a Work Permit. 

 

I'm not sure this is related, but the renewal application for my own Work Permit has blossomed in size in the last year, with numerous onerous requirements. What used to be a simple couple of forms is now a 100 page tome, listing every employee, the most recent company tax return, proof of VAT payments, proof of Social Security payments for Thai employees, a copy of the DBD registration, shareholder list, bank statements...even the transcript from the last year of my highest university degree. Oh, and a Certificate of health from a hospital stating a long list of diseases I do not have.

 

Similarly, the Non B Business Visa renewal application has similarly blossomed in size, now topping 150 pages, including 'action photos' of the applicant pretending to issue orders, mull over key business decisions, etc.

 

Perhaps the additional requirements relate back to this ongoing "Operation Nominee Sweep".

[sabai-dee-man]

2 hours 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. 

 

I agree.

 

I do agree with the x-number of Thai employees per foreign employee/director, but why should 51% be owned by a Thai?! Utter BS!

[JBChiangRai]

1 minute ago, Walker88 said:

American citizens are allowed to own 100% of a business per the Treaty of Amity. The Treaty was first signed in 1833, and extended again in 1966. Most law firms in Thailand know how to register a company under the Treaty.

 

Elsewhere, the numbers as they appear in the article seem odd. 270 companies would provide 'shelter' for more than 68 Russians, so likely there is more to come. Also, any company employing a non-Thai/non-ASEAN (who has a registered/legal Work Permit) must employ 4 Thai nationals for every foreigner with a Work Permit. 

 

I'm not sure this is related, but the renewal application for my own Work Permit has blossomed in size in the last year, with numerous onerous requirements. What used to be a simple couple of forms is now a 100 page tome, listing every employee, the most recent company tax return, proof of VAT payments, proof of Social Security payments for Thai employees, a copy of the DBD registration, shareholder list, bank statements...even the transcript from the last year of my highest university degree. Oh, and a Certificate of health from a hospital stating a long list of diseases I do not have.

 

Similarly, the Non B Business Visa renewal application has similarly blossomed in size, now topping 150 pages, including 'action photos' of the applicant pretending to issue orders, mull over key business decisions, etc.

 

Perhaps the additional requirements relate back to this ongoing "Operation Nominee Sweep".

 

You're right, a Treaty of Amity Company can be 100% owned by an American, but it comes with a few restrictions, it cannot own real estate.  I believe some people have managed to do that, but it's indefensible if you're questioned.

[CANSIAM]

Desperate deeds done by a desperate people, get that exempt entry stay down further to 30 days from 60.... get your Island back ! 

[Hakuna Matata]

5 hours ago, webfact said:

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.

 

Bravo, this is a move in the right direction!

 

Also, please revise the ED visa requirements and enforcement.

 

 

[Robert Tyrrell]

Good Morning,

 

Is this the first one youve busted for this Thailand ? 🙂 As if this is a shock or the first one ? 🙂 Theres many places like this in Thailand and this is no secret, Supporting financial assistance with bank accounts and so on !!!! WAKE UP !!! What I don't undertsand does that mean they have corrupt Immigration Officers  ????? 🙂

 

 

[cnx101]

3 hours 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..

It’s the same as the agency’s doing retirement visas

[brewsterbudgen]

8 minutes ago, cnx101 said:

It’s the same as the agency’s doing retirement visas

True, but not as sensitive to Thais and the government as fraudulently buying "Thai" land.

[OneMoreFarang]

5 hours 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.

I thought foreigners can only get a work permit if they are employed in a Thai company with enough capital, at least 4 Thais for one foreigner, etc.

Can anybody get a work permit (and Non-B visa) by just being a shareholder? 

[brianthainess]

Now check the rest of the country.       

[andygrr]

4 hours ago, stoner said:

 

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

No there is not normally a problem setting them up. The problems arise at the end of the financial year was the company actually operating, were profits made and taxes paid. If a profit was made by the companies was she paying any tax on her 49% of 200+ companies. This is when these bogus companies come to light.

[Cabradelmar]

In a way, Thais and Russian are kindred spirits... Both are notoriously corrupt and both love a good scam. 

[watchcat]

2 hours ago, TheFishman1 said:

This government will allow these Russians come in destroy the country destroy the legal system and nothing is really done about it.

 

As long they do it in the southern parts, I could not care. Heep them in Pattaya, Phuket and Samui, I'll be happy.

[Presnock]

28 minutes ago, OneMoreFarang said:

I thought foreigners can only get a work permit if they are employed in a Thai company with enough capital, at least 4 Thais for one foreigner, etc.

Can anybody get a work permit (and Non-B visa) by just being a shareholder? 

the BOI LTR folks can get a work permit through the BOI also but would then pay taxes on funds earned in Thailand

[easydoor]

And then we don't speak about all the people who are using VIA AGENTS....

Many of them are people what doesn't fulfil the financial requirements for

a one year extension of stay..