Police Arrest Operators Behind Pyramid Scheme

[george]

Police arrest operators behind pyramid scheme

BANGKOK: -- The Special Investigation Department (SID) has arrested six suspects for allegedly running pyramid schemes that preyed on more than 800 victims.

The SID is now going after 10 other suspects, including those operating two legal entities, who were also involved in the scams.

Justice Minister Suwat Liptapanlop yesterday said the pyramid schemes had resulted in victims losing more than Bt28 million. “This involved two separate gangs,” he said.

The heads of the first gang were identified as Sujira Suchatanan, 42, and Suchart Phaet-udom, 38. They are alleged to have established Star One Karnfaifa Ltd Partnership in Pathum Thani as a front and to have successfully lured 400 people into buying shares in the business.

The suspects claimed they sold electrical appliances for a large profit. Those who wanted a share in the company had only to pay Bt4,690. Each share entitled the holder to collect Bt10,000 every 30 days, and more promises were made to holders if they bought several shares or were successful in persuading others to buy shares.

“The paid dividends were from new buyers. In fact, this partnership didn’t do any business,” Suwat said.

He said Sujira and Suchart managed to obtain Bt19.8million from their victims. The two suspects are now facing public-fraud charges.

The second gang comprised 14 suspects including legal entities Erawan Food Network Co Ltd, and Suphanchat Ltd Partnership. Of the second gang, Utis Limmangkorn, 44, Preecha Nonluecha, 34, Wanlanares Suvanam, 31 and Rungsak Mingsorn, 62 have already been arrested.

Arrest warrants have been issued for the other suspects.

The SID cracked down on the second gang after finding that the two legal entities had lured more than 400 victims into paying Bt10,550, with a promise to pay the victims Bt9,000 every 15 days for the rest of their lives.

--The Nation 2005-06-18

[sriracha john]

lured more than 400 victims into paying Bt10,550, with a promise to pay the victims Bt9,000 every 15 days for the rest of their lives.

PHEW!... I'm so glad they caught them, as I would have likely fallen prey as their next victim after hearing their sales pitch mentioning those kinds of return on my investment... I mean... wouldn't you jump at it too?

Edited June 17, 2005 by sriracha john

[penzman]

Yes, but only with someone else's money.

[dr_Pat_Pong]

Yes, but only with someone else's money.

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I'll go halves with you on that basis

[Thetyim]

I certainly would not fall for that old scam.

I am currently making much better returns with a friend of mine who lives in Nigeria and has a vast amount of money to move.

My cheque should be here any day now.

[dr_Pat_Pong]

That must be similar to the one I went into Funds in hand next week

[mnoorsapl]

Glad those suspects got caught. The number of victims could very well be more than the reported in the news.

[Kerryd]

That must be similar to the one I went into   Funds in hand next week

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I'm dealing with a reputable HK banker. He has an account belonging to a (dead) Iraqi military officer, with no will or dependants.

All I have to do is give him my bank account number and I'll get 7.4 million US $ !!

(do people actually fall for these ridiculous scams ? Tthey must, otherwise there wouldn't be so many people trying to run the same scams over and over again)

[xbusman]

They only have to find .000000001% that are sucker enough to make a living. Thank goodness I won the British lottery and am waiting the transfer to my visa card any day now or I might be tempted too......

[dr_Pat_Pong]

They only have to find .000000001% that are sucker enough to make a living. Thank goodness I won the British lottery and am waiting the transfer to my visa card any day now or I might be tempted too......

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