HUA HIN, THAILAND – Thai police smashed a nominee network in Hua Hin, arresting 13 foreigners who used shell companies to control land and properties fully worth an estimated 300 million baht.
Over 200 officers from multiple agencies raided 15 targets on August 10 in Hua Hin district, Prachuap Khiri Khan province. Deputy police chief Samran Nuanma led the operation. The prime minister had personally called for a crackdown on nominee structures that morning, and police hit the ground that same day.
Thirteen foreigners arrested across the city
Three Brits, four Chinese nationals, an Italian, a Frenchman, a Dutchman, an Austrian, a Filipino, and an American were taken into custody. Police had previously obtained arrest warrants for 45 foreigners and summoned 39 Thais for questioning.
The operation checked 33 companies and searched two houses in the same project in detail.
Eight hundred forty-nine firms under suspicion
Police say around 849 companies in the Hua Hin region are suspected of being part of nominee networks. In one house searched, foreigners and Thais had set up a company with no business operations — the house was used only as a residence.
In the second house, the foreign owner told police he did not even know the person registered as a shareholder. He controlled the property 100 per cent and rented it out for around 50,000 baht per month. Authorities are checking whether the cases violate the Foreign Business Act or the Land Code.
Owners get 180 days to sell properties
Deputy chief Samran said the province governor agreed to give affected owners a deadline of 180 days to sell their properties voluntarily. If they fail, the land will revert to the Thai state.
Foreigners questioned by investigators said they wanted to own property in Thailand and were advised by law and accounting firms to set up companies. They believed the ownership was legal. But the firms allegedly never conducted any business.
Thais used as front shareholders
Thais registered as shareholders told police they never paid for the shares, never managed the companies, and never saw any financial documents or proof of their stakes.
The affected companies are said to have had no business operations.
said police investigators.
Law firms in the crosshairs
The law firms involved are Thai outfits, according to police. In one case, a firm charged just 500 baht for document preparation. In another, the foreign client prepared the papers himself. Police will refer the cases to the Lawyers Council of Thailand.
No direct link has been found yet between firms in Hua Hin and those in earlier operations, like on Koh Phangan. But the method is nearly identical in all provinces investigated so far. Asked about a legal loophole, deputy chief Samran said there is no loophole — the structures are deliberately designed to evade control.
Documents and digital data seized
Officers seized company registration documents, accounting records, computers, mobile phones, and digital data. They will trace the flow of money.
Investigators also aim to identify more participants and linked networks in Thailand and abroad.
Nationwide crackdown expands
Before the Hua Hin action, police had run five phases of operations against suspected nominee networks. Investigations covered six provinces, including Surat Thani, Phang Nga, Phuket, Krabi, and Chon Buri.
A total of 233 land plots and structures worth an estimated 2.5 billion baht were checked. Courts approved 133 arrest warrants, and 20 cases have already led to convictions.
State officials to be probed for corruption
National police leadership vowed to continue cracking down on foreign investors and nominee networks operating illegally in tourist areas. They will also investigate whether state officials were involved in corruption or supported such networks.