AMLO goes after California Wow management
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The Anti-Money Laundering Office (AMLO) is taking action against local management members of fitness club chain California Wow, which it says fabricated its accounts to show losses while transferring more than Bt1.69 billion abroad over a 10-year period o
Secretary-general Seehanart Prayoonrat said yesterday the pattern of behaviour of California Wow pointed to public fraud and tax evasion – offences under AMLO’s jurisdiction. These ranged from suspiciously false statements made to the stock market that is was operating a loss since 2003, to suspicious wiring of money overseas despite continuously reporting losses.
Seehanart said California Wow’s operation in Thailand was basically an illegitimate money-transaction business, which led to members suffering bad service and losing their membership fees, its stockholders losing their benefits and Thailand losing revenue. “It is basically a systematic, wisely devised and well-planned and operated public fraud,” he said. “The motive to cheat customers since the beginning of operation is quite apparent.”
There are 10 people facing legal action by AMLO, said Seehanart, who has not yet named them. The Department of Special Investigation, the police’s Crime Suppression Division, and the Office of the Securities and Exchange Commission are coordinating with AMLO in jointly probing further into the California Wow case.
He said the suspects, who were part of the Thailand-based management members, were expanding the chain in a few countries, including the Philippines. AMLO believes it can retrieve all the money transferred out of the country, he said.
California Wow was established when the Thailand and Korea locations were spun off from California Fitness in the early 2000s. In 2012, California Wow was sued in Thailand’s Bankruptcy Court by Bangkok Bank, which sought the repayment of a Bt72-million loan, including Bt4 million in interest. As a result, California Wow shut down seven of its eight Thailand branches.
Seehanart said California Wow was listed in the stock exchange in 2002 – the first year of its operation in Thailand and the only time it reported profits. AMLO has been tracking the transfer of money and is aware of destination countries where relevant authorities have been informed of the issue.
“The highest amount transferred – Bt495 million – was in 2010,” he added.
