KOH PHANGAN — Police have arrested three Israeli nationals and five Thai and Myanmar workers in a continuing crackdown on illegally operated nominee businesses on the resort island of Koh Phangan, where foreign investors use Thai proxies to skirt ownership laws.
The joint operation by Surat Thani Immigration Police, Provincial Police, Tourist Police, and local officials targeted two hotels operating without proper licenses and employing illegal migrant workers. A total of eight people were detained: two Israelis, four Myanmar nationals, and two Thais. Authorities continue to pursue a third Israeli suspect.
First Raid: Hotel Operating Without License
At Hotel Arcana in Moo 8, Koh Phangan sub-district, authorities charged Mr. Guy, an Israeli national, and Mr. Suwichanon, a Thai national—both company directors—with operating a hotel without authorization.
Police also arrested Mr. Sean Gal, an Israeli national serving as hotel manager, for working beyond the scope of his visa permissions. Two Myanmar workers were detained for illegal employment.
Second Location: Café Uses Restricted Labor
At Blessings Home and Cafe in Thong Sala village, officers discovered two Myanmar workers employed in positions prohibited for foreign laborers: serving coffee and handling cash at the bar.
Mr. Panupong, a Thai national registered as the employer, was charged with allowing foreigners to work beyond their legal scope. However, investigation revealed that Ms. Yara, an Israeli national listed as a company director, was the actual owner. She is the third Israeli suspect being pursued by authorities and will face charges of operating a hotel without authorization, while the Myanmar workers were charged with working beyond their legal permissions.
Nationwide Campaign Against Nominee Schemes
Police Lieutenant General Phanumat Bunlaksana, Commissioner of the Immigration Bureau, emphasized that the operation aligns with policies to suppress transnational criminals and groups using Thailand as a base for illegal activities, including nominee business schemes that damage the economy and Thailand’s tourism image.
Authorities have opened a 24-hour hotline at 1178 for citizens to report suspected illegal activities by foreigners.
The crackdown on Koh Phangan reflects growing enforcement against foreign-owned businesses that circumvent Thai law by registering companies under Thai nominees while maintaining actual control of operations.
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