Koh Phangan crackdown finds 32 firms linked to foreign nominee offences
Police have launched phase two of a crackdown on suspected foreign nominee businesses on Koh Phangan, finding clear offences involving 32 companies and nearly 80 rai of illegally held land.
Police have launched the second phase of a crackdown on suspected foreign nominee businesses on Koh Phangan, raiding 32 companies and finding clear evidence of wrongdoing, including illegal land holdings covering nearly 80 rai.
Pol Lt Gen Noppasin Poonsawat, a commander attached to the office of the national police chief, on Saturday provided an update on the police campaign against foreigners violating Thai law. More than 300 officers were deployed in an integrated operation titled “Crackdown on Foreign Nominees on Koh Phangan: Phase 2”.
Noppasin said he led an investigation team handling more than 39 cases and sought approval from the Koh Samui Provincial Court for search warrants at 36 locations. The targets were companies suspected of acting as nominee businesses. Police also requested 45 arrest warrants for foreign nationals of various nationalities.
The charges include:
- Foreign nationals jointly operating businesses prohibited to foreigners, in sectors where Thai nationals are not yet considered ready to compete with foreign operators, under Sections 8 and 37 of the Foreign Business Act.
- Illegal possession of land, in violation of Sections 97, 112 and 113 of the Land Code.
More than 300 officers took part in searches and arrests under warrants approved by the Koh Samui Provincial Court.
One key search site was FB Properties Co Ltd, also known as Yoga House, where officers found that an Israeli man was the true owner, while Thai nationals were allegedly used as nominee shareholders to conceal ownership.
The company was found to be holding eight land plots covering 7.5 rai, valued at more than 60 million baht. It had also allegedly been operating a hotel business without permission.
Police divided the findings into two main groups.
The first group involved 32 companies with clear nominee structures. Officers seized 45 land plots covering more than 40 rai, arrested 22 foreigners and assessed the damage at more than 200 million baht.
The second group involved 32 companies in which foreign shareholders outnumbered Thai shareholders. These companies held 38 land plots covering more than 38 rai, most of which were vacant land without buildings. Officers searched 21 companies holding the land to gather evidence and proceed with legal action.
Noppasin said the campaign was aimed at preventing transnational crime, illegal business operations and the displacement of Thai workers by foreign operators. He said the issue had been building up on Koh Phangan since 2024.
So far, legal action has been taken against 29 suspected businesses on the island. Courts have already ruled in two cases. A total of 62 suspects have been identified, comprising 32 Thai nationals and 30 foreigners.
The first phase of the operation, launched on May 13, focused on upstream and midstream networks, including law firms, accounting firms and nominee companies. Police pursued 37 cases, issued three arrest warrants and conducted searches under 27 warrants.
Investigators found evidence that Thai nationals, including state welfare cardholders and employees within related business networks, had allegedly been used as proxy shareholders. The same registered address was also allegedly used for more than 100 foreign-linked companies.
Police therefore filed charges of jointly operating foreign businesses without permission and illegally holding land.
“After phase two of the operation, we will hold a joint meeting with the director-general of the Department of Business Development, the provincial commerce office and the land office to accelerate financial investigations and expand the probe into this nominee network at its roots,” Noppasin said.
“We will also conduct an in-depth investigation into whether any state officials were involved, before reporting the findings to the prime minister.”
The Royal Thai Police stressed that the operation was intended to restore order on Koh Phangan and ensure the island remains a tourism destination that meets proper standards.
It also aims to prevent illegal foreign capital groups from exploiting local people. Police said similar crackdowns would be expanded seriously across the country.
Members of the public who have information can report it to local police stations or the police hotline 24 hours a day.
