Massive Nominee Network Raided on Koh Samui and Koh Phangan

A joint DSI task force targets five nominee networks in southern Thailand, exposing multi-billion baht property fronts and a complicit law firm.

A coordinated crackdown by the Department of Special Investigation (DSI) and the Department of Business Development (DBD) has targeted five distinct nominee networks operating across Ko Samui and Ko Pha Ngan, revealing that a single law firm was used to register more than 100 suspected shell companies.

The joint task force executed targeted search warrants against five corporate entities accused of violating the Foreign Business Act. The raids uncovered extensive illicit land acquisitions and complex corporate laundering schemes designed to bypass statutory prohibitions on foreign commercial property ownership.

Poonpong Naiyanapakorn, director-general of the DBD, confirmed the operation was triggered after his department flagged a wider pool of 34 entities suspected of using Thai nationals as front shareholders.

The initial enforcement blitz focused heavily on five primary target groups:

The Five Targets Under Investigation

1. The 'J' Corporate Group (Special Case No. 93/2026): This network allegedly deployed Thai proxies to illegally acquire land and develop a luxury villa estate spanning over 14,000 square metres in Bo Phut on Ko Samui. Public promotional materials explicitly named a Chinese developer, whilst Chinese executives directed internal policy. The DSI seized financial records revealing asset holdings exceeding 1,692 million baht and bank transactions topping 1,987 million baht, primarily fed by international wire transfers.

2. The 'P' Law Firm (Special Case No. 94/2026): Identified as a principal enabler for foreign syndicates, this firm is accused of using its own office headquarters to register 103 distinct corporations. Further audits linked the firm to over 150 companies, using employees and close associates as proxy shareholders for foreign clients to hide transactions exceeding 795 million baht.

3. Company 'B' (Wellness Front): In Ko Pha Ngan, an Israeli-operated nominee network was raided after investigators discovered at least five affiliate firms sharing a single address. One entity operated an unlicensed health and yoga resort with assets exceeding 100 million baht, which is now being audited by provincial health officials.

4. Company 'N' (Hotel Front): Operating a hotel on Ko Samui since 2013, this firm features a mix of Thai and Israeli shareholders with total assets over 2,000 million baht. Special case investigators are auditing the financial capability of the Thai shareholders to determine if it represents an illegal proxy arrangement.

5. Company 'L' (Construction & Resort Front): This residential construction firm is linked to an Israeli director and a resort network tailored exclusively for foreign tourists. A physical inspection revealed the office address is shared by six other corporations controlled by the same group, holding land assets valued at over 30 million baht.

A Crackdown on 'Grey Capital'

The enforcement blitz follows direct directives from Prime Minister Anutin Charnvirakul and Deputy Prime Minister and Commerce Minister Suphajee Suthumpun, who ordered aggressive legal action against corporate proxies to protect national economic sovereignty.

The nominee system remains a deeply rooted threat in southern Thailand's real estate markets. In Surat Thani province alone, risk-modelling data has flagged over 3,500 property-holding companies where foreign shareholding sits precisely below the 50% legal threshold. Furthermore, 261 local accountants have been identified as holding suspicious proxy shares across these firms.

The Ministry of Commerce warned that the state will aggressively pursue all colluding parties, warning that professionals found enabling illegal corporate structures will face severe criminal prosecution under anti-money laundering and foreign trade statutes.