Condo Development Scam

[eljeque]

Briton, Thai wife accused of swindling

US partner says he was cheated of over B40m

WASSAYOS NGAMKHAM

Rhodes: Denies all charges against him

A Briton and his Thai wife were arrested in Chon Buri province for allegedly swindling more than 40 million baht from their American business partner. Craig Rhodes, 45, a British national, and his wife Piyaporn Chanthorn, 28, a native of Khon Kaen province, were yesterday arrested at Country Property Land & Development Co in Chon Buri's Sattahip district by a team of Crime Suppression Division (CSD) police.

The arrest follows a complaint from the American, James Russell Generazzo, 64, who asked the CSD to look into alleged cheating by the couple who persuaded him to co-invest some 43.5 million baht in a land development project with them.

Deputy CSD chief Pol Col Jaruwat Waisaya said there were grounds to believe the couple had swindled Mr Generazzo.

Investigators found the suspects had set up a firm to develop land projects in Thailand. The firm advertised its projects in several magazines in Pattaya to persuade foreign investors to co-invest in the projects.The ads attracted Mr Generazzo, who later contacted the couple.

Mr Generazzo was persuaded to invest in a condominium project. The couple asked him to buy two five-rai land plots for the project site. They suggested that two firms be set up to purchase the two plots separately. The firms _ Siam Coastal Enterprise Co and Beverly Garden Co_ were subsequently set up with the couple and the victims serving as executives.

The actual land price was 3.2 million baht a rai. However, the couple allegedly lied to Mr Generazzo that the land was bought at 4.5 million baht per rai, and he paid 22.5 million baht to the couple for a five-rai land plot. They later asked him to buy two cashier cheques, one worth 15 million baht and the other eight million baht, for the purchase of the second plot. The couple then opened a bank deposit account in their names and put the eight million baht into the account, according to police.

After the payments were made, the suspects showed no sign of starting the project. Mr Generazzo became suspicious and demanded that the couple resign as executives of the two firms and return 43.5 million baht to him. However, the suspects set a pre-condition that he must pay them 10 million baht first, so he decided to seek help from the CSD, said Pol Col Jaruwat.

The investigation team also said the suspects had preyed on several other people, mostly foreigners. However, most of the victims were too afraid of Mr Rhodes, who has lived in Thailand for over 9 years, to seek help from police.

The couple's lawyer said his clients denied all the charges.

Bangkok Post, March 26, 2008

[Rimmer]

It will be very interesting to see if any of the other alleged victims come forward.

My guess is there are hundreds if not thousands of people who have been caught up in land and property scams and then put the loss down to experience. Maybe if this case is ever proven it could be a watershed.