BANGKOK — The number of Russians entering the country increased significantly after the Russian-Ukrainian war. 59,717 Russians came to Phuket and registered an unusual number of 1,603 businesses, according to a Thai senior police officer.
On May 31, 2024, Pol Lt. Gen. Jirabhop Bhuridej, the Central Investigation Bureau (CIB) Commissioner, announced the results of the “CIB Operation Nominee Sweep” targeting foreign nominee networks in Phuket at the Central Investigation Bureau headquarters. The authorities conducted raids on accounting firms and real estate companies in Phuket.
The operation led to the arrest of 231 people, including 96 legal entities, 98 foreign suspects who were doing business without authorization (mostly Russians), and 37 Thai nationals who were acting as agents to support foreign companies. All suspects are accused of “doing business without complying with the law” The Thai suspects were charged with “aiding, abetting or participating in business with foreigners.”
The seized items included 225 bank account books with a turnover of 318.9 million baht, 245 land documents covering approximately 10,500 square meters with an estimated value of 1 billion baht, 43 land deeds covering 24 rai with an estimated value of 200 million baht, 196 passports, 108 work permits, 800 company registration documents and 1,601 company stamps. The total value of the confiscated assets is over 1.5 billion baht or 40.75 million USD.
Pol. Lt. Gen. Jiraphop said that Phuket residents had complained to Prime Minister Srettha Thavisin that foreigners, especially Russians, were doing business and buying land in large numbers, driving up property prices and affecting the livelihoods of locals.
In the key operation, police found that the main suspect, Ms. Iana, 45, was involved as a director and shareholder alongside Thais in 9 companies – the highest number for a foreigner in Phuket. These included 7 real estate companies, 1 service company and 1 travel company with a total registered capital of 38 million baht.
Investigations revealed that Ms. Iana owns, among others, three luxury residential and apartment projects in Phuket with a total of 176 units worth over 900 million baht or 24.45 million USD, with nominee Ms. Treethip listed as a shareholder.
Ms. Iana was found to be a director and shareholder of 272 companies, including 142 wholly Thai-owned companies and 130 joint ventures with foreigners with a total value of 268 million baht. The authorities gathered evidence and obtained arrest warrants for those involved, leading to the arrest of the suspects.
Ms. Treethip’s company, founded on 13 June 2016, provided accounting and business registration services for foreigners and employed 22 people. Ms. Treethip used her name, relatives and employees as nominees to circumvent legal restrictions and established links with 272 companies, including 130 nominee companies for foreigners, mainly operating in the real estate, tourism and services sectors, with a total registered capital of 679 million baht.
In addition, Ms. Treethip registered 141 companies with only Thai shareholders to obtain non-B visas, work permits and bank accounts for foreigners. Five foreigners used these accounts to entice Thais to invest through computer schemes and complaints have already been filed online.
Ms. Treethip admitted to receiving 30,000-50,000 baht per company for acting as a nominee.
Investigators have summoned 85 foreign suspects to acknowledge the allegations. The investigation revealed that 24 companies own 245 properties, including 196 condominiums with an area of about 10,500 square meters and 43 plots of land with a total value of 24 rai worth an estimated 1.2 billion baht or 32.6 million USD. Police will continue to investigate the legality of these properties and prosecute any illegal foreign land acquisition.
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