74-Year-Old American Expat Faces Deportation Over Loan Sharking: Phuket

[webfact]

Phuket expat, 74, faces deportation over loan sharking

Phuket Gazette

Mr Granata (in white shirt) sits and watches as police go through the loan agreements kept in his Phuket home.

PHUKET: -- A 74-year-old American man and a woman from the Philippines are facing being deported to their home countries after being arrested and charged in Phuket with working without a work permit and overcharging interest on private loans.

Lt Col Somkid Khaosang, Duty Officer at Thalang Police Station, said that Anthony Thomas Granata, 74, and Ressel Alostor Alpay, 39, were arrested at Mr Granata’s Phuket home in Baan Bang Jo, Thalang, on December 28.

Both deny the charges against them and have been released by the Phuket Provincial Court on bail of 100,000 baht each. A court date for the hearing has yet to be set.

Although the charges were filed by Thalang Police, the arrests were made by Phuket Immigration officers, Lt Col Somkid explained.

“Our investigation revealed that Mr Granata has been doing this for more than two years,” said Maj Kaken Nikornhatsachai of Phuket Immigration.

“He has at least 500 clients, each with a loan on average of about 30,000 baht – that’s about 15 million baht in loans in total. Most of the borrowers are Filipinos and he was charging them 10% interest per month…

"One of his borrowers had been paying this rate for two years,” said Maj Kaken.

Under the Thai Civil and Criminal Code, personal loans are limited to a maximum interest rate of 15% per annum.

Maj Kaken also alleged that Mr Granata held onto borrowers’ passports until the debt was repaid – much like most motorbike rental operators in Patong.

Phuket Immigration Superintendent Col Panuwat Ruamrak ordered Maj Kaken to investigate Mr Granata’s activities after one of his Mr Granata's borrowers reported him.

To test the informant’s allegations, the officers watched from a distance as the informant staged a cash loan repayment to Mr Granata and Ms Alpay in the car park of the Tesco Lotus store in Cherng Talay.

After the informant handed over the money, the officers moved in and identified themselves.

In Ms Alpay’s bag police found 3,000 baht cash and of two passports of borrowers.

Armed with a search warrant, the officers then searched Mr Granata’s house.

In the home, the officers found one set receipts of payments from 27 different borrowers, and another stack of receipts from a further 22 borrowers.

They also found lists of names of borrowers and at least 20 loan agreements in the drawer of a desk.

No passports of any borrowers were found in the raid.

“If they are found guilty of the charges against them, they will be deported. The case will probably take about three months in court,” said Maj Kaken.

Source: http://www.phuketgaz...ticle11922.html

-- Phuket Gazette 2012-01-06

[thaiIand]

evil farang taking thai jobs again...

sad to see him go, hes probably a lot better for philipinos than those thai lenders who'd have you killed by someone from sri thamarat if you're 1 day late on a 50satang payment.

[Zpete]

May be illegal all round, but he seems to be looking after "OFWs".

Pity, as most of whome are generally NOT too afluent and send money home to family.

[alstaxi]

Do not take work from the bib.

[geriatrickid]

In the event that the charges are legitimate, then this man was a parasite. He can kiss his loan portfolio goodbye. I wonder what occupation he previously had. .

[parmo1]

10% interest until payday is not too bad. Typical rate for the Filipinos, i would have thought. I am sure that the guy did not know about the maximum rate of interest law. Ms Alpay was his Filipina secretary, i read. Are there so many Pinoys in Phuket, 500 ?

I think my calculations are correct, according to me, he was making over 30,000 USD a month from the interest, 15 million baht @ 10% interest per month. Loan sharking

Edited January 7, 2012 by parmo1

[Orgathai]

His last customer was probably a Thai police man

[jsflynn603]

Yes he was a parasite, and unlike HSBC bank, he'll be deported, while HSBC can continue front-running interest and confounding Republic of Philippines natives with extraordinary rates, and extraordinary fees. HSBC will even taunt people into re-financing and then only allow partial financing so that when eventually the creditor lapses behind in payments, the fees are doubled.

Then, of course there is Goldman Sachs who set up Greece with loans that they knew would fail, all the while selling the portfolio to those who would benefit. Or JP Morgan, who "lost" 6.5 billion US$ worth of Sino Gold shares when they were trustee for Eldorado Gold... Oh yes, "we lost 6.5 billion dollars worth of shares for many, many weeks..."

Imagine what you can make simply writing covered puts/calls on EGO (Eldorado Gold)

There is no honesty anymore, no markets, simply manipulation.

Still, 120%/year is ludicrous. Don't export the fella, incarcerate him and make him make restitution by painting floral scenes on hand-made fans. Then all will benefit, except him.

[stevenl]

I have read more of these reports. Apparently all it takes is one lender to go to the police and they seem to take action (don't know how often somebody reports these practices and no action is taken).

And yes, mainly Thai lenders are apprehended, foreigners (wisely) seem to stay away from this. Good money though, up to 10% per month.

[RichardSlack]

10% is peanuts compared to legitimate (UK) companies charging anything from 1000% to 2000%apr on payday loans. But yeah taking business away from bib is naughty

Edited January 7, 2012 by RichardSlack

[Hooters]

big win for the borrowers,

[khaowong1]

I think what it all boils down to is, he was taking business away from some Thai loan shark who makes his regular monthly payments to the BIB.

[RogueLeader]

This would be quite legal in many Western countries. British companies are even now advertising representative APRs of 1286% upwards.

I'm not going to link to them because they're usurious scum.

Edited January 7, 2012 by RogueLeader

[philw]

evil farang taking thai jobs again...

sad to see him go, hes probably a lot better for philipinos than those thai lenders who'd have you killed by someone from sri thamarat if you're 1 day late on a 50satang payment.

Parasitical scum and good riddance to them both.

It's 10% per month and indefensible.

[prakhonchai nick]

big win for the borrowers,

Not really. They will still need to borrow, and next time will likely pay more than 10% a month.

[travelmann]

I have read more of these reports. Apparently all it takes is one lender to go to the police and they seem to take action (don't know how often somebody reports these practices and no action is taken).

And yes, mainly Thai lenders are apprehended, foreigners (wisely) seem to stay away from this. Good money though, up to 10% per month.

Maybe I should ask the Jet ski boys to lend me a 1000 baht and then see what happens, sure the Police would be down on em like a ton of bricks.

[IMA_FARANG]

Sorry, no sympathy from me for this scumbag.

But I'll be kind and say it this way...assuming the charges are valid.... then I have no sympathy for this (alledged) scumbag.

However, please do NOT deport him to the U.S.A.

Instead deport him (or send him) to the Phillipines.

But first confiscate his U.S. passport and any money he has, so he arrives in Manilla with no money, no passport, and charges against him of loansharking money from Fillapino citizens.

In that case, he is going to be happy to be in a Fillapino jail...and still alive.

[anon467367354]

It looks to me that the issue here is he or they didn't have work permts, and they charged too much interest, The question that comes to mind here is, all these guys from India that sell nuts and beans from a basket, that move on to become loan sharks, do they all have work permits? They are a very conspicuous enterprise with their nice motorcycles and turbins so it's probably not illegal. does anyone know the means of getting into this line of work? it looks like easy money.

[Tatsujin]

The most interesting part of the article I found was the fact that it stated they would be deported for working without a Work Permit. From the last conversation I had with a Police acquaintance, that would mean blacklisting also.

[Napat9]

BIB = ?

Thank you...

[KKK]

Mr Granata held onto borrowers’ passports until the debt was repaid – much like most motorbike rental operators in Patong

Isn't holding onto anothers passport also illegal? Don't all foreingers in Thailand have to carry their passport as ID unless they have some other form of acceptable ID such as a Thai driving license.

Never surrender your passport to anybody for any reason other than being released out of criminal custody on bail or to your own embassy/consulate.

[EvolvingApe]

His last customer was probably a Thai police man

It doesn't make his crime any less to note that natives commit the same crime. That makes the crime more serious, actually. He moved to another country, likely on a retirement visa which prohibits employment, and set up an illegal business that preys upon an already well established social problem. No country wants to import criminals. It is not and should not be tolerated anywhere. That police or other native citizens of the given country do this thing or that doesn't mitigate the charges in my opinion.

[travelmann]

I never understand why people moan when they decide to borrow at stupid rates, "they decide" they are high risk if no one else will loan to them. Go ahead tell me im disgusting hahahah

[vahack]

Thai loan sharks charge up to 25% per WEEK. he picked a bad time to be in it since the govt decided loan shark crackdowns were a priority project. there have been hundreds of arrests. all it takes is a phone call to get someone investigated.

but yea, if his 'secretary' was Thai he probably could have worked out a deal with the popo. 2 farangs dont make a right..

[shawndoc]

BIB = ?

Thank you...

Boys in Blue aka the police

[Sateev]

BiB = Boys in Brown, i.e., the Thai police.

[wxyz]

there will be lots of tea money for the boys in phuket now

party party party

probably should stay off the roads

where a filipino would get an extra 3k a month for interest hm

I feel so much safer now that this dangerous couple will be leaving

now phuket is safe and free from the most dangerous criminal there

thankfully Jeremy Renner didn't run into him

Edited January 7, 2012 by wxyz

[SlyAnimal]

Of course the police are quick to jump on it. Govt cracking down on loans, so theyre happy. Guy was in competition with the mafia, so mafia is happy.

Not a nice business, but 10% is better than the mafia rates at least

[SGD]

And do you really think that all these debts will be wiped out ? of course not, the BiB will have a field day collecting on this.

The gravy train really came in with this one.

[peterdes]

I think , if these people giving there pasport ,theu are at the end of the line.

charging 10% is -I think - a fear deal.

still if he sure want to help these people , there is probably an other way if you have this big amount of money

and yes , probably was starting to swim in thai loan waters .....

ahh , it is and always will be there , the criminal minds