Phuket Resort Scam: British CEO Arrested

[khaowong1]

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.

Please, everyone think about this. In order to pull off this level of scam, he would have to have some big shot Thai politico/military/police behind him. Me thinks, someone, most probably the Thai politico, fell short on the grease money, or the Brit fell short of the grease money and out of favor.

[khaowong1]

"This case is tarnishing the reputation of Thailand."

more like confirming or re-enforcing.....

[khaowong1]

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.

You really think he could have done this ALONE? (if he is guily) There are lawyers and local people involved. It is not possible without them to back up the transaction. All documents are in Thai language anyway.

absolutely, positively, right on... no way he could have done all this on his own..

[mysticpaki]

Its simply called GREED.

No one bothered him since 2005 so he thought why not continue milking.

I hope he rots in jail for a long time.

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....

[Sabre]

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.

Would someone care to answer my post?

Its v relevant to this case.

Probably the key issue is what he has done with the deposit money in the meantime. Has he applied it towards the project, or has he siphoned it off dishonestly?

The lack of regulation in Thailand doesn't help. Basically anybody can start selling anything off the plan anytime.

There is a huge amount of corruption, fraud and cheating that goes on in the foreign-buyer real estate markets here (i.e. Pattaya, Phuket, Samui, Hua Hin and other 'resort' markets).

The authorities do care! They all want their cut. That's probably what took the police so long to make an arrest in this case - trying to work out how to liberate as much of the deposit money as possible from the developer.

[connel707]

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

Trust an Australian......... because he was still scamming and thought he was paying off the right peoples... why do you think he refused to pay the bail money...he thought he had protection from very high up.... Hang the cheating dog... let him be an example..

[Pakboong]

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.

I do not own any percentage of a property in Thailand......................................................

It always amuses me how so many people, who would never "invest" a penny in property in Thailand, nevertheless scour the board for such threads, desperate to pounce with their inane " I told you so" posts.

So often they regurgitate the same old same old, reminding all who have to plough through their drivel that the only way to own property in Thailand is to buy a condo'.

Well, as far as I can tell, you're right. Owning the freehold on a condo' is basically owning a piece of sky, which happens to be in a building, built by a Thai Company on land probably belonging to another Thai. You take your chances.

Those of us who choose to live in Thailand, but do not accept that they should rent, have no safe alternative. So we take our chances with whatever choice we make. Up2us.

Your way of thinking is pretty much my thoughts. "You take your chances." No one wants to rent, they want to own, but you can't own, so, you roll the dice with the Thai land owner.

I was never having a go at those who have chosen to purchase property, just want to learn.

If/when I decide to buy, I guess I will be rolling the dice as well.

Another concern for me is, if my purchase is reasonable "secure" - what about possible changes to the visa laws that may see me unable to complywith them and live in my own place in Thailand?

The original laws were maintained largely to keep the Chinese from buying up Thailand. Now that the Chinese are in control of government and now write and manage these same laws, you can bet that we westerners are considered competition and will be managed within these laws to the Chinese advantage. We have only been here 30 or so years and watched very carefully.

[connel707]

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.

He is in prison in Bangkok./...read "Welcome to hel_l " by Colin Martin. Nothing more than this guy deserves.. He is not paying the bail money, because he believes he has high up protection.. seems he was paying the wrong man..! Bring in Bubba... Oh, for another Chang.

[Screws]

They serve white rice now.

Mores the pity.

[OzMick]

Option 2: set up an usufrucht agreement on the land and property with the house owner (My Thai wife of 11 years in this case)- gives you guaranteed tenancy of house/land for your lifetime.....no sale or house amendments without your legal agreement.

My kids charge me a $1USD per annum rent.

regards,

Brewsta

Has it occurred to you that if she decides that she really needs that house, all she has to do is have you killed?

[cdmtdm]

you're exactly right. i know him personally, and have for a few years now. money isn't an issue with him believe me. the 10mill for bail wouldn't be a problem for him to put up. not saying he's innocent or guilty but he could of easily of walked away years ago, he always seemed determined to complete the project. there's more here than we're being told.

yes i agree anthony , always pays to hear both sides of the story ...... something is not as it seems ... if this guy was such a crook he would have been gone at the peak of the market not hung around to cope with the markets we have now...... so before all you experts hang the man best we get the full story ...perhaps he refused to pay off some local or maybe he paid and the local wants more ........ interesting twist this one not your normal developer scam fellas..

ps .. i have never met the guy

[asiawatcher]

I am not aware of any mandatory licences required in Thailand for Real Estate sellers/developers.

But if making a pitch to 3rd parties for development, taking deposits, means he did not have Development Approval or Building Approvals (DA & BA's) thus 'may' argue he was using funds as itemised in his budget for that process. Not having received them and not now having the monies to proceed would indicate he either did not pay enough tea money or he is simply not a good developer.

I think calling this a deliberate fraud would leave more to being 'explained' but you can bet there are Thai's in the deal for sure and not as purchasers. LOL

Edited April 3, 2010 by asiawatcher

[sangfroid]

yes i agree anthony , always pays to hear both sides of the story ...... something is not as it seems ... if this guy was such a crook he would have been gone at the peak of the market not hung around to cope with the markets we have now...... so before all you experts hang the man best we get the full story ...perhaps he refused to pay off some local or maybe he paid and the local wants more ........ interesting twist this one not your normal developer scam fellas..

ps .. i have never met the guy

Nothing but NOTHING in Thailand is EVER what it seems to be!!

[cdmtdm]

Nothing but NOTHING in Thailand is EVER what it seems to be!!

agreed for suuuurrrreeeeeeeeeee

[ableguy]

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.

along with the BIB

[canuck64]

Scammers are the same the world over. They will never admit guilt and spend a lot of time self-brainwashing themselves that they've done nothing wrong. It negates any semblance of a conscience allowing them to sleep at night.

[steelepulse]

If you look at the history of Puravarna, this British guy is the fall guy for the monied people. This project wasn't selling, so the investors backed out and all the people that put up cash are now out of their money. I've heard that a certain Mr T had some financial interest in this project.

Funny I met a British guy very close to this development in a bar one night and I started asking "what ever happened to Puravarna" at which point this guy who said he was the marketing manager started getting really defensive and seeing as he was completely drunk, I stopped with the Puravarna questions. He left a few minutes later and nearly got run over by a car (Black Fortuner) when he stumbled into the street.

Now I see there is a for sale sign up at the location where the helicopter was supposed to land which is next to Icon Pub.

[HerbalEd]

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 ?

Actually farangs can buy and 200% condos. Also, you can lease land for 30 years and build yourself a home on the land ... but after your lease runs out you either have to move the house, destroy it or let the land owner keep it.

[robertson468]

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.

The comment that one should carry out due diligence is both valid and valuable advice. If you bought a car you would probably lift the bonnet to have a look to see if it has an engine and then take it for a test drive. Having satisfied yourself that it works you would then ask for the Registration Book and would not part with any money until you have it in your sticky little hand. I know of a Farang, who despite being advised DON'T PART WITH YOUR MONEY UNTIL YOU HAVE THE BOOK, went ahead and did so and it turned out that "The Brit" did not own the car and not only ran off with the money for the car, but took him for even more money on some spurious business deal. This is what is called NOT carrying out due diligence. There are many nice people in Thailand, both Thai National and Farang, but there are also many who will take every opportunity to part the more naive members of society from their hard earned rubles. Beware folks and do carry out your due diligence, no matter how nice the person seems - COVER YOUR A**.

[BillR]

These guys, the spainards included, took the money, bought a fleet of mercedes and range rovers and recently could not pay their staff. Yes, they told their staff "sorry we can't pay you now" Next to Icon bar in rawai there is a location that these idiots wanted to construct a helicopter landing pad, all on borrowed money. The Yacht club is FOR SALE. Any reasonable company would jump at the the purchase but their balance sheet is so out of whack it will never happen unless for pennies on the dollar.

[paulchiangmai]

I hope he rots in jail for a long time.

As usual with stories like this, there is probably much more to it....

Come on, lets not consider there might be a lot more to the story, lets just stick with I hope he rots in jail for a long time.

[Guardianangeltree]

Steven Granville, born Steven James SHORROCK, was denied bail by the judges at the Criminal Courts. Error in the News reports.

His lawyer, Pairot Anuratpanich of Chinnadej & Associates,was also charged. His Lawyers are also "Shareholders" of the Puravarna Group.

More arrests are taking place, & Interpol is now involved.

His arrogance as a Barrister thought that he could hide behind the myriads of Thai Laws. Justice has caught up with him & his Gang of Rogues for cheating us. Phase 1 was stalled years ago. Phase 2 was never started although they extracted up to 80% of the purchase prices.

Colliers International Hong Kong & Singapore are being investigated. They were the Property Agents who held the joint Puravarna Resorts/Colliers International Exhibitions in Singapore, Hong Kong, Sydney, London, Manchester, Dublin, etc. They released money from the Escrow Accounts to Puravarna Resorts.

Puravarna Group is 50% owned by Steven James Granville through East India Holdings Ltd (Hong Kong) and 50% by Boscasoli Dos S.A. of Spain. No Thai Partners here. But the Thai Lawyers from Chinnadej & Associates are the so called "Shareholders" and Directors as well. Some of the Shareholders of Boscasoli Dos S.A. own the Spanish Football Club called FC Espanyol.

Interpol, New Scotland Yard, the Irish Police, Singapore Police, etc are now involved.

Why would a man change his Surname before coming to Thailand. He was a Barrister, who was in the Real Estate business in Marbella, Spain before coming to Thailand. He thought he could hide behind the myriad of Thai laws for his benefit. That is why he was so arrogant and remained in Thailand after taking these deposits. He is not the fall guy for anybody. He comes from a poor family from Cheshire, England, and he is just arrogant. He is the Chairman and CEO.

The THB 217 million is only from 19 parties who are making their claims. There are a total of 80 odd investors.

Edited April 3, 2010 by Guardianangeltree

[brahmburgers]

Lots of people get cheated just by paying too much - even for legit property.

I've secured four parcels in northern Thailand - several houses included. A total of about 22 rai - all for a cumulative total of between 3 to 4 million baht. Granted, only one parcel with a large house has title, but if it's done with some advance scrutiny, non-title can be as secure in the long run as titled property. In other words, if you secure the property and can reside on it and do whatever you want with it for the next 50 to 60 years, who's got a problem with that? Admittedly, it's not for everyone, just as speculation within the stock market is not for everyone (I don't buy stocks because I don't like the risks or the returns or the idea of putting money in other peoples' pockets), ....so it's all a matter of personal choices.

[barrywk]

I took a look at this project only two days ago - really sad to see much of the first phase of this ambitious and stylish scheme well advanced but abandoned - clear a lot has been spent on the works there. There may well be some dodgy dealings behind the current situation but it's rather sad that this development has been unsuccessful when you see other rather grim projects in the local area being completed. As noted already there is a large sign on the road advertising the whole project for sale - hope something good will ultimately come of this - Rawai has suffered enough development blight already.

[LivinLOS]

Puravarna Group is 50% owned by Steven James Granville through East India Holdings Ltd (Hong Kong) and 50% by Boscasoli Dos S.A. of Spain. No Thai Partners here.

A Thai company, non BOI or Amity, and 100% non Thai ownership ??

[thaiwanderer]

Think he/she meant no real Thai partners as then says Thai directors and shareholders through law firm?

Edited April 5, 2010 by thaiwanderer

[Arkady]

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.

I have never been particularly interested in buying anything in Phuket but a friend recently showed me information about a place he was thinking about buying there. It was an apartment on a 30 year lease that can be registered with the Land Dept with the usual options for two more 30 year leases that can't be registered or legally enforced. The sales people said that most of the developments that are not houses in Phuket are being sold like this now. They are not registered as condos, so for the convenience of the sales people there is no stub of 51% left over that has to be sold to Thais (who are absent from the Phuket market altogether) or via Thai companies illegally controlled through nominees. It also means that there are no title deeds for the individual units and the whole building remains owned by a single owner. The buyers get shares in a BVI that controls the Thai company that is claimed to own the the land and building through a preferred share structure which is supposed to guarantee that, when the time comes, the second and third 30 year leases will be honoured. The sales agent, a reputable international firm, declined to provide any due diligence information on the Thai or BVI companies, or building permit, saying this was overkill for such a modest purchase. At the same time they claim there is no shortage of buyers wanting to buy into these convoluted structures, lacking any due diligence information, in the secondary market.

Personally I wouldn't touch a structure like that with a barge pole - freehold or nothing as far as condos are concerned for me. I would imagine the Thai company, if it really owns the land would have a lot of debt used for the construction and the title deed would be held by a bank, possibly never to be returned. More than likely the BVI company, if it is really controlled by the buyers, would in turn give you control of sweet FA in 30 years time when you need it. I would expect that in a few years time the secondary market in the residual leases on these units will about as buoyant as the market in the 51% of the previous wave of condo developments in Phuket that must be owned by Thais. Sorting out the corporate affairs of the Thai and BVI companies is likely to be more of a minefield than managing the "man of straw" Thai companies that developers sales people gleefully helped set up for foreign buyers telling them all the while it was legal.

[silk]

Option 2: set up an usufrucht agreement on the land and property with the house owner (My Thai wife of 11 years in this case)- gives you guaranteed tenancy of house/land for your lifetime.....no sale or house amendments without your legal agreement.

My kids charge me a $1USD per annum rent.

regards,

Brewsta

Has it occurred to you that if she decides that she really needs that house, all she has to do is have you killed?

O put drugs into your pocket

[redwhite30]

Just been wondering about this case, has been going for long time now. Lived in Nai Harn at the time when he got arrested. Remember work being done after he got arrested on the site? Is there still work? Does the guy float around again? Seems like a forgotten story? BUt very much interested, the hotel seems to be doing well...