PHUKET, THAILAND – Thai police have announced a major crackdown on foreign entrepreneurs allegedly using illegal nominee arrangements to acquire land and businesses.
Coordinated raids across several popular tourist destinations resulted in the arrest of nine suspects and the uncovering of a business network valued at 231 million Baht. Investigators dismantled a complex web of hotels, resorts, restaurants, and even cannabis shops as part of this operation.
Two criminal groups targeted by investigators
The Royal Thai Police (RTP) have initiated Phase 3 of their extensive offensive, focusing on foreign investors who have been illegally acquiring land and operating businesses through Thai nominees.
These investigations have brought to light two distinct groups of perpetrators. The first group comprises ten companies identified as mere fronts for foreign ownership. For four plots of land, covering approximately 3,450 square meters and valued at 116 million Baht, 13 arrest warrants were issued by the court.
Nine arrests in Phuket – five Israelis among suspects
Authorities were able to execute ten of the thirteen arrest warrants, taking a total of nine individuals into custody. The arrested suspects hold various nationalities.
According to the police, the group includes five Israelis, two French nationals, one Dutch citizen, and one Russian. They are accused of violating land laws by using Thai citizens as cover.
39 companies with opaque share structures
The second group is significantly larger, with 39 companies coming under scrutiny. These firms are suspected of having foreign shareholders holding more than 50 percent of their shares. For 52 plots of land, spanning around 20,250 square meters, the market value is estimated at 115 million Baht.
The court approved 29 search warrants to secure evidence and summon those involved. In total, the operations concern nearly 24,700 square meters of land, with a combined value of 231 million Baht.
The G-Mat network: From hotel lobby to head shop
Authorities have exposed the business network of the company G-Mat. This structure reportedly includes hotels, resorts, condominiums, and a motorcycle rental service.
Other companies identified within this shadow structure include Aba Co., which operated restaurants and cannabis shops, and a fitness company with multiple studios. All are alleged to have been controlled by foreign capital.
300 officers storm Koh Phangan
A second wave of raids took place on the popular island of Koh Phangan. The Thai National Police mobilized over 300 officers to dismantle nominee structures across the entire island.
Foreign nationals suspected of concealing illegal land ownership and business activities through similar methods were at the center of this operation. This action is considered a significant blow against foreign criminal activity in the Gulf of Thailand.
Villa Andaman: DSI hands over files to special prosecutor
In the high-profile Villa Andaman scandal, involving trust-based real estate transactions, the Department of Special Investigations (DSI) has taken a crucial step. All case files concerning the 31 suspects have now been transferred to the office of the special prosecutor.
This case marks a turning point in the fight against foreign-controlled real estate in Phuket and Koh Samui. The suspects are alleged to have used a system for years to circumvent the prohibition of land ownership by foreigners.
Zoo in Krabi as a cover for investors?
In Krabi, authorities have begun scrutinizing a zoo. The suspicion is that the facility served as a disguised nominee business for Israeli investors.
Investigators are now examining violations of the foreign business law, as well as compliance with animal welfare standards. It remains unclear whether the animals were kept for concealment purposes or if the business was merely a pretext for land acquisition.
Phang Nga follows Prime Minister’s tough course
In Phang Nga, law enforcement officers also launched a comprehensive raid against illegally operated companies held by foreign entities. The officers are directly citing the policy of Prime Minister Anutin Charnvirakul concerning the protection of Thai economic interests.
The pressure on foreign businesspeople who believe they can circumvent Thailand’s laws through trickery is now massively increasing. Raids are expected to continue in all affected provinces to apprehend the remaining suspects.