KOH PHANGAN — Authorities on Koh Phangan continue their ongoing crackdown on nominee businesses operated by foreigners, with the latest operation targeting the island’s largest vehicle rental network run by Russians. Officials seized 400 motorcycles and cars following a four-month investigation triggered by complaints from foreign tourists that a rental company had confiscated their passports.
Raid Uncovers Extensive Operation
On October 21, tourist police from Koh Phangan, in coordination with local administrative officials, Koh Phangan Police Station, Surat Thani Provincial Police, and immigration officers, inspected the Center Point rental car and accommodation business in Village 1, Koh Phangan subdistrict.
The raid found one Thai national managing the company’s operations, one Russian national handling customer service, three Myanmar men working as mechanics, and two Myanmar women employed as housekeepers.
Authorities discovered 87 passports confiscated from customers as collateral for vehicle rentals, along with 20 cars and 400 motorcycles. Initial findings suggest possible links to multiple motorcycle theft cases in the area, as one detained Myanmar national admitted to purchasing motorcycles from Myanmar acquaintances for just a few thousand baht.
Nominee Business Structure Revealed
Beyond the unlicensed rental operation, investigators found the company was also running an unlicensed daily accommodation service and auto repair shop. The business had two shareholders: one Thai national who admitted to having no actual investment and merely working as an on-site employee, and one Russian national residing in Phuket who invests in real estate across multiple areas.
Seven Charged in Main Operation
Valery, 39, a Russian national, faces charges of working beyond permitted activities; a 39-year-old Thai woman was charged with jointly operating an unlicensed hotel business; three Myanmar men aged 24, 31, and 45 were charged with working beyond permitted activities as mechanics; and two Myanmar women aged 34 and 39 were charged with failing to notify authorities about employment details within required timeframes.
Additional Businesses Targeted
Simultaneously, authorities inspected three additional illegally operated foreign-owned businesses, including a law office belonging to a Thai woman named Khemthong, where documents showed 81 companies registered at the same address, indicating she assisted foreigners in establishing nominee companies.
Two companies were found operating unlicensed hotels. Fishman Villa had two Israeli directors: Mr. Ron, 45, and Mrs. Reut, 45. Thoren Phangan had three directors: Mr. Shai, 48, and Mrs. Inbal, 44, both Israeli nationals, and Mr. Kanit, 44, a Thai national.
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