Koh Samui nominee crackdown opens 60 cases linked to 1.2bn baht property

More than 300 police and government officials launched a major operation on Koh Samui on Saturday (August 15), targeting foreign-linked businesses suspected of using Thai nominees to hold shares or assets on their behalf.

Deputy Interior Minister Polapee Suwunchwee joined Pol Gen Samran Nualma, deputy national police chief, and officials from Surat Thani province, the Department of Business Development and the Department of Special Investigation in launching the seventh phase of the foreign nominee network crackdown.

The operation followed an investigation based on the “Koh Phangan model”, which authorities have used to examine suspected illegal foreign business activity and nominee shareholding arrangements in major tourist destinations.

Probe identifies 59 suspected companies

Investigators reviewed 12,906 registered companies operating on Koh Samui. Of these, 8,254 had foreign shareholders, while 875 showed characteristics that officials believed could indicate the use of nominees.

Further screening identified 59 suspected companies linked to 37 plots of land and buildings covering approximately 5.05 hectares. The properties were valued at an estimated 1.2 billion baht.

The investigation led to 60 cases involving 88 suspects, comprising 26 Thai nationals and 62 foreigners.

Koh Samui Provincial Court approved 37 search warrants. Police arrested 14 foreign suspects sought under warrants, including four Chinese and four British nationals, as well as one national each from Italy, France, the Netherlands, Austria, the Philippines and the United States.

Five business networks come under scrutiny

The searches focused on five main company networks allegedly involved in nominee arrangements, unlicensed businesses, property development, visa applications and suspected tax avoidance.

The first, identified in the source as the “Kalp-Tree” group, comprised 19 Israeli-linked companies. Investigators alleged that the network used multi-layered corporate structures and Thai nominee shareholders.

The companies were accused of operating an unlicensed pre-school childcare facility and buying, developing, selling and renting luxury villas to foreign customers.

A second network, described as the “Hol-C” group, comprised four German-linked companies involved in property development and the construction of luxury villas on steep hillside land.

Officials were examining whether some construction exceeded legal limits and whether building permits had been obtained improperly. The companies were also accused of selling villas by changing shareholders within nominee companies to avoid land-transfer taxes and failing to declare revenue for corporate income tax.

In a third network, identified as the “Kamon” group, Thai nationals were allegedly involved in establishing 27 companies for foreigners seeking work permits or one-year business visas.

Investigators found that information in the companies’ registration documents appeared inconsistent with the investments that had actually been made.

A fourth network, referred to as the “Pa” group, comprised 16 companies that were initially registered entirely under Thai ownership, allegedly to avoid requirements to submit documents relating to foreign investment.

Foreign nationals were subsequently introduced into the shareholder structures to obtain work permits and convert their visas to business visas, despite investigators finding no evidence that the companies were conducting genuine business operations.

French investment fraud complaint leads to hotel probe

The fifth network involved two companies and emerged from information provided by the French Embassy in Thailand concerning a French national accused of defrauding investors in a cannabis-farm project of more than 21 million baht.

Surat Thani immigration investigators alleged that money obtained from French victims was used to establish a company identified in the source as the “I” company, with Thai nationals acting as nominee shareholders.

The company was allegedly used to acquire land and construct a luxury hotel featuring a swimming pool and tennis court. Another company, identified as “Domain”, was established to manage the property through what authorities described as disguised lease agreements.

The accommodation was advertised online for daily stays priced between 11,000 and 17,000 baht per night, although investigators found no hotel operating licence.

Earlier operations cover property worth 2.84bn baht

Samran reported that the first six phases of the nationwide campaign had examined 238 companies and 272 plots of land covering more than 29.44 hectares.

The land and buildings involved were valued at approximately 2.839 billion baht, while authorities had obtained 178 arrest warrants.

The campaign is intended to bring foreign investment and business activity in major tourism provinces into compliance with Thai law. Target areas include Surat Thani, Phuket, Krabi, Phang Nga, Chon Buri and Prachuap Khiri Khan.

Authorities also plan to pursue government officials found to be involved in corruption and expand investigations into suspected nominee networks across the country.

Members of the public can report suspected illegal foreign business activity to their local police station or contact the 1599 hotline around the clock.