Fraud Scandal Rocks Phuket Condo Project: Aussies Demand Justice

[snoop1130]

 

In a scandal shaking Thailand's real estate sector, two Australian men have filed a fraud complaint against Kata Beach Company, the developer behind the ill-fated Peaks Residences project in Phuket. Despite investing over 5 million baht and winning a civil court case, the pair have yet to receive any compensation, prompting calls for greater accountability and justice.

 

On September 4, the Central Investigation Bureau (CIB) announced they've begun investigating the complaint related to the failed development. The Australians had reported their case on September 3 to Kamala Police Station, revealing they had paid significant sums for a dream condo that remained undelivered. While a court ruling favoured them, enforcing the judgment has proven elusive as the company dodges financial restitution.

 

Evidence from the Consumer Protection Police Division (CPPD) reveals a broader scheme: Kata Beach Company illegally sold land without proper titles and forged building permits, ultimately halting construction. Under Thai law, condominium projects must be built on legally titled land, a requirement the company flouted. Following permit revocation, the developers offered alternative properties to buyers, yet the promised refunds have not surfaced.

 

 

 

 

The CIB emphasised the importance of complying with consumer protection laws, stressing that developers must be held accountable for their failures.

 

“Consumer protection laws will hold them accountable for failing to deliver properties,” the bureau noted.

 

As investigations continue and more victims come forward, Thai police remain committed to safeguarding consumer rights and ensuring justice, irrespective of the buyers' nationalities.

 

File photo 

 

-- 2024-09-05

 

 

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[xylophone]

12 minutes ago, snoop1130 said:

As investigations continue and more victims come forward, Thai police remain committed to safeguarding consumer rights and ensuring justice, irrespective of the buyers' nationalities.

Yeah right!! Poor buyers are almost certain to get "shafted" on this one, as has happened before here.

[Celsius]

Oh look at the picture looks like Dubai suay na krap

[steven100]

17 minutes ago, snoop1130 said:

Thai police remain committed to safeguarding consumer rights and ensuring justice

 

   It's not April 1st is it .....    

[steven100]

good luck with that one fellas .....    I think you have two chances of getting any financial claim back ...

 

buckleys & none ....        TIT,  it's not the west .. their justice system is far from credible. 

 

who in their right mind would buy an expensive seaside condo here without seeing it and without paying a lawyer to do a complete and thorough check.  

[steven100]

This is not a scam or a Thai cheat or thief as in most cases ....  it's a developer that went bust,  which happens in Australia, UK and everywhere.

 

The legal process being usually forces the liquidated company to sell all assets to retrieve the customers deposits and payments made.  However,  the problem being, as in Australia and everywhere, the directors transfer assets, funds, anything of value over to relatives, in-laws or whoever to avoid repossession.

 

I am sure the Australians are aware of this .... 

 

Just look at Australia's Kingsgate Mines ..... they lost millions because of Thailand's antiquated justice system. 

 

Thailand's legal system won't work as it does in the west,  I doubt the directors will spend one night in jail if no assets or funds are recovered.   

 

I've seen it, I've been in the thai courts, I know what they are like.  The legal system here is dubious to say the least. 

 

 

I would guess their 5 million is gone and not coming back. 

 

 

 

 

 

 

Edited September 5 by steven100

[LivinginKata]

1 hour ago, Celsius said:

Oh look at the picture looks like Dubai suay na krap

 

It's Patong Beach. Story about a Kata development.

[redwood1]

The buyer were ok with the risk of buying off plan.....So they should also be ok with losing their money....

[London Lowf]

7 hours ago, steven100 said:

it's a developer that went bust,  which happens in Australia, UK and everywhere.

 

But, unlike Australia, UK and everywhere, Phuket is absolutely littered with abandoned developments, many of them huge! I would imagine that there is a similar back story to most of them.

 

When I first started coming to Phuket, the only one I noticed was at the south end of Nai Yang beach - now they are everywhere with more to follow I would guess.

[Regyai]

The logical progression after buying

 

imaginary property 

 

with real money

(should have made a quick sketch and told sellers 'there's an artists impression of what the money will look like')

Edited September 5 by Regyai

[hotchilli]

12 hours ago, snoop1130 said:

The CIB emphasised the importance of complying with consumer protection laws, stressing that developers must be held accountable for their failures.

Arrest the Kata Beach Company CEO... easy solution.

[loong]

12 hours ago, Celsius said:

Oh look at the picture looks like Dubai suay na krap

 

12 hours ago, snoop1130 said:

File photo

 

Prabably totally unrelated to the report.

[loong]

11 hours ago, steven100 said:

This is not a scam or a Thai cheat or thief as in most cases ....  it's a developer that went bust,  which happens in Australia, UK and everywhere.

 

12 hours ago, snoop1130 said:

Evidence from the Consumer Protection Police Division (CPPD) reveals a broader scheme: Kata Beach Company illegally sold land without proper titles and forged building permits, ultimately halting construction. Under Thai law, condominium projects must be built on legally titled land, a requirement the company flouted.

 

I don't think that the article claimed that the developer went bust.

They sold property that they had no right to build on or sell, so a scam.

[klauskunkel]

"the Central Investigation Bureau emphasizes and stresses, while the police remains committed."

Yup, that about sums it up... 

[nausea]

"Caveat emptor" and all that. To my mind such shenanigans are pretty much par for the course in Phuket, and hardly justifies the rather hyperbolic headline "rocks Phuket".

[rumeaug]

15 hours ago, steven100 said:

good luck with that one fellas .....    I think you have two chances of getting any financial claim back ...

 

buckleys & none ....        TIT,  it's not the west .. their justice system is far from credible. 

 

who in their right mind would buy an expensive seaside condo here without seeing it and without paying a lawyer to do a complete and thorough check.  

Winning such cases in court are difficult pretty much anywhere in many countries. It takes time. But foreigners can actually win cases here and surprisingly fast at times (and not that rarely). Working in Thailand   (legally, yes.. 🙂 )i sued clients three times (same reason : non-payment of fees overdue), all were  well-established and one could say "powerfull" Thai companies  who thought that as a foreigner, even with a small (boutique) thai registered company they could pretty much do whatever the heck they wanted and get away with it. Well, they were all proven wrong and lost the cases, fairly rapidly (in less than a year), and had to pay pertaining penalties etc...The thai justice system is certainly not optimal in many instances, but  it more often than not, it works. Cheers

[steven100]

3 minutes ago, rumeaug said:

Winning such cases in court are difficult pretty much anywhere in many countries. It takes time. But foreigners can actually win cases here and surprisingly fast at times (and not that rarely). Working in Thailand   (legally, yes.. 🙂 )i sued clients three times (same reason : non-payment of fees overdue), all were  well-established and one could say "powerfull" Thai companies  who thought that as a foreigner, even with a small (boutique) thai registered company they could pretty much do whatever the heck they wanted and get away with it. Well, they were all proven wrong and lost the cases, fairly rapidly (in less than a year), and had to pay pertaining penalties etc...The thai justice system is certainly not optimal in many instances, but  it more often than not, it works. Cheers

well your result certainly sounds fine but it is rare. I know several farang who went to court for similar circumstances and in the end they got nothing, ... oh' two won the case and the director of the company was ordered to pay ... but never did and left Thailand, the other didn't pay up as ordered also.

And in a case I was involved in, the same thing, got zero,  and the cops don't go and look for the guy, and who's going to keep paying fee's, lawyers, hotels etc .. thousands of baht when the result will be nothing back.  Get what I mean .....  So please don't try and tell me the Thai justice system is anywhere near credible,  it's crooked as a dog's hind leg.