Phuket Resort Scam: British CEO Arrested

[webfact]

Phuket resort scam: British CEO arrested

PHUKET: -- The British chief executive officer of a Phuket resort company has been arrested on fraud charges for allegedly cheating customers out of millions of baht.

Mr Steven James Granville, 43, CEO of Puravarna Resort Co, was arrested at the company’s office in Rawai.

Crime Suppression Division police had received information from Mr Anand Kumar Sen, managing director of Tycoon Group Co, a Singaporean company which represented 19 customers who had paid for Puravarna Resort Project residences.

Mr Anand reported to police last May that mr Granville and Puravarna Resort Co had advertised the development project in newspapers and had held exhibitions around the world in places such as Singapore, Hong Kong, UK and Australia.

According to advertisements, the company had started construction on seventy 6 to15 million baht units near Rawai in 2005 due to be be finished in 2009.

However, when customers began to realize the construction would not be completed on time, they began to ask questions, said Mr Anand.

Customers complaints were met with explanations ranging from flooding problems and financial difficulties to political problems.

Mr Anand said that, in fact, the company had never been granted construction permits by Phuket Province.

He added that the victims, who feel they have been cheated, “are from many countries and include well know people such as the owner of the Singaporean Tiger Beer Company. This case is tarnishing the reputation of Thailand.”

Mr Granville has denied the charges against him and refused comment.

-- Phuket Gazette 2010-04-02

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[Asianrider]

If no construction permit was ever issued, sounds like these buyers never did any due diligence before buying .....caveat emptor

[Basil B]

Took 11 months to arrest him...

[thaibkk]

it is all a big scam in every country that advertises that you can buy land/house in thailand...

or... what they do not say, you can buy it, but it will not belong to you .... never

or first need to 'buy' a thai wife or setup an illegal company construction

right ?

[elcent]

one of the dirtiest branches of business in Thailand. No surprise that this profitable scam market is so much fought for, gov and private want to take the resins out of the cake for all the overpriced projects.

[kheops]

I hope this isn't gonna mysteriously finish as a head swinging off of Rama 8 bridge...

[dudemeister]

Scam season is back again.

Better get enlightened.....

[loong]

it is all a big scam in every country that advertises that you can buy land/house in thailand...

or... what they do not say, you can buy it, but it will not belong to you .... never

or first need to 'buy' a thai wife or setup an illegal company construction

right ?

A foreigner cannot own the land but can own a house that is built on the land.

There are various ways that a foreigner can legally own property, a condo like development for example as long as 51% of the development is sold to Thais. The land can also be leased to a foreigner.

[robblok]

All those people saying buyer beware.. and due diligence.. That does not mean the guy is not a crook.. I mean is it ok to cheat stupid people ?

Or are you just trying to stick out for a fellow farang or Brit.. the guys is a crook nothing more nothing less.

[OzMick]

Ummmmm......if it was all a big scam, why is he still here?

[Wiggy]

Funny, I can't ever remember a Thai being arrested for this kind of stuff. It's OK for Thais to rip off people, but not for farangs. Still, if he's guilty then lock him up.

[elcent]

Ummmmm......if it was all a big scam, why is he still here?

milking the guy while putting pressure in various forms in the background?

Farangs are the front to sell the scams while influential people pull the strings. No pity for this guy either.

[Jirapa]

Ummmmm......if it was all a big scam, why is he still here?

Errmmmmm???? Because he's in Police custody! Or had his passport taken away while waiting to be formally charged?

[antony77]

Is this guy a licensed real estate agent? Probably not along with most of the racketeers in the real estate business in Thailand. It seems any criminal can go into this kind of business in Thailand. Most of the foreign ones seem to be "Brits"

[onlooker]

He's still here because he has refused the pay the 10 million baht bail to be released from custody. Obviously a man of principle. Or slightly mad.

[Acharn]

Took 11 months to arrest him...

Yeah. Notice which department is handling the case -- Crime Suppression Division. Oh, well, at least they're being careful to make the case -- this story didn't mention it, but the story in yesterday's BKK Post said he was arrested based on a warrant issued by the court, so they clearly have a solid case.

[OzMick]

Ummmmm......if it was all a big scam, why is he still here?

Errmmmmm???? Because he's in Police custody! Or had his passport taken away while waiting to be formally charged?

yes, he's in custody now. But a week ago he wasn't, and he was still here. If deposits have been paid, and no building permits applied for, why isn't he in parts unknown? Take the money and run!

[crusader79]

Ummmmm......if it was all a big scam, why is he still here?

Errmmmmm???? Because he's in Police custody! Or had his passport taken away while waiting to be formally charged?

I suspect what Jirapa meant is, if his intention was simply to scam money (without obtaining proper permits, etc.), why didn't he leave Thailand once he had the funds, long before getting arrested? As usual with stories like this, there is probably much more to it....

Edited April 2, 2010 by crusader79

[Acharn]

He's still here because he has refused the pay the 10 million baht bail to be released from custody. Obviously a man of principle. Or slightly mad.

My thought is that he already spent the money and doesn't have 10 million baht to put up. Enjoy the fish heads and rice, fella.

[Basil B]

All those people saying buyer beware.. and due diligence.. That does not mean the guy is not a crook.. I mean is it ok to cheat stupid people ?

Or are you just trying to stick out for a fellow farang or Brit.. the guys is a crook nothing more nothing less.

Could not agree more, there are many more out there, they tarnish Thailand's image and do nothing in the way of supporting Thailand's economy, Thailand could better it's self by getting rid of all such scum.

[kratiam]

Is this guy a licensed real estate agent? Probably not along with most of the racketeers in the real estate business in Thailand. It seems any criminal can go into this kind of business in Thailand. Most of the foreign ones seem to be "Brits"

I believe you need a licence in the US but in UK anyone can set up as an agent without formaility.

[ukrules]

If no construction permit was ever issued, sounds like these buyers never did any due diligence before buying .....caveat emptor

Still illegal though !

[Roota]

Funny, I can't ever remember a Thai being arrested for this kind of stuff

Perhaps you don't read the Thai newspapers? Plenty of real estate-related arrests over the years.

[101734]

Is this guy a licensed real estate agent? Probably not along with most of the racketeers in the real estate business in Thailand. It seems any criminal can go into this kind of business in Thailand. Most of the foreign ones seem to be "Brits"

That's right, it would appear the Brits are after the big money and leave the selling of worthless junk on eBay to the rest.

[logbags]

They serve white rice now.

[F1fanatic]

Whilst I've no sympathy for this guy, isn't it possible he received deposits, started building and ran out of money because not enough units had been sold?

I thought that was the way most developments proceeded - find buyers, start building and pray enough buyers turn up as the building work proceeds? If they do, the developer walks away with millions and no questions asked.

The problem arises when the developer can't find enough buyers to complete the work?

Sorry to put question marks after everything - but I don't know, its just what I'd assumed.

[mythBuster]

I could come up with at least a handful of projects in Bangkok or Chiangmai where the same is happening on an industrial scale for at least 15 years. There is a mock-up unit, there is a nice plan and foremost there is a glossy brochure. They put money down, the construction never starts, the company goes bankrupt, the land is purchased by an other company that is taking part in the scheme and they start selling again. There are plots of land that are vacant for 2 decades and every two year or so a new billboard is put up, new letterhead printed and a new sales office gets fully staffed.

This is also done by very big corporations. Consumers have hardly any protection. I know examples where directors welcomed the customers who complained with a police general. It is is highly unlikely that the local authorities were not in on it.

[LivinginKata]

He's still here because he has refused the pay the 10 million baht bail to be released from custody. Obviously a man of principle. Or slightly mad.

Or broke. If he had the money he would for sure bail himself of the Phuket prison hel_l hole.

[crusader79]

Whilst I've no sympathy for this guy, isn't it possible he received deposits, started building and ran out of money because not enough units had been sold?

I thought that was the way most developments proceeded - find buyers, start building and pray enough buyers turn up as the building work proceeds? If they do, the developer walks away with millions and no questions asked.

The problem arises when the developer can't find enough buyers to complete the work?

Sorry to put question marks after everything - but I don't know, its just what I'd assumed.

Having launched his project in 2005 he's got no excuse, how could anyone have overestimated the appeal of Thailand as a great investment opportunity?

Edited April 2, 2010 by crusader79

[Crispy Duck]

I am sure there is more to this story why would stick around for so long with all that money, there are far better places in the world than living in Thailand....so let not judge him now...