KO PHA-NGAN, THAILAND – Thai authorities dismantled an alleged foreign nominee network behind a luxury villa project valued at more than 100 million baht on the resort island.
Authorities traced project to Ukrainian-backed firms
Investigators reported that they had found two limited companies with Ukrainian investors in the background, while a Ukrainian national held the position of managing director. All registered shareholders were Thai citizens, who were allegedly used only as nominees for the foreign financiers.
“The examination of the shareholder structure revealed the use of Thai nominees,”
said Police Colonel Apichat Chansomret, calling it a clear violation of the foreigner law.
Large-scale raid on luxury villa construction site
Under the command of Major General Suwat Suksri, police, immigration officials and district administrators carried out a major raid. Their target was the construction site of luxury villas near Koh Koma, where more than 20 units were currently under construction.
Each villa was being marketed for up to 59 million baht (around 1.8 million euros), aimed at an ultra-wealthy clientele.
Illegal workers uncovered during inspections
During the checks, officers identified a Myanmar worker who was staying in Thailand illegally, and legal proceedings were launched against him immediately. He had entered the country without permission and was working off the books at the site, which investigators described as another piece in the alleged criminal network.
The trail led officers to the two companies suspected of being the real employers behind the project.
Case began with arrest of Azerbaijani electrician
The investigation started after the arrest of an Azerbaijani man on 4 November, who had been working illegally as an electrician without a work permit. Follow-up inquiries brought officers to the two companies and exposed the much larger nominee network.
What began as a minor labor case evolved into one of the island’s biggest investigations into illegal foreign investments.
Possible charges under Foreign Business Act
Authorities were now gathering evidence in detail, and all parties involved faced potential legal consequences. Charges for illegal employment and for violations of the Foreign Business Act were considered likely.
The Interior Ministry signalled it intended to set an example, as foreign investors had repeatedly attempted to circumvent Thailand’s property ownership laws.
Crackdown on shadow investors on Thai islands
Officials said the case illustrated Thailand’s determined stance against illegal foreign investments, particularly on sought-after islands where nominee arrangements had flourished. Oversight had been significantly tightened, and no project was seen as safe from inspection.
For the Ukrainian investors, the dream of a lucrative luxury villa development on Koh Pha-ngan now risked turning into an expensive legal nightmare.