Koh Phangan, Thailand – Authorities carried out coordinated raids on two unlicensed hotels on Koh Phangan, detaining several foreign nationals and migrant workers as part of a nationwide campaign against foreign-run shell companies.
Coordinated raids on two properties
Investigators from the immigration bureau, provincial police, tourist police and local officials searched the Hotel Arcana in Moo 8 village and the Blessings Home and Café in Thong Sala village. Officials said the operation resulted in the detention of eight people, whom they described as three Israelis, four Myanmar workers and two Thais.
At Hotel Arcana officers detained an Israeli identified as Mr. Guy and a Thai manager, Mr. Suwichanon, who were listed as directors. Investigators said another Israeli, Mr. Sean Gal, worked at the property as hotel manager despite visa conditions that did not permit that role. Two Myanmar employees at the site were also arrested after authorities concluded they were working without permits.
Allegations of front companies and illegal operations
At the Blessings Home and Café, officers discovered two Myanmar workers carrying out prohibited duties — serving drinks and handling cash. The business was officially registered in the name of a Thai man named Mr. Panupong, but police said their inquiries indicated the true operator was an Israeli national, Ms. Yara, who they now regard as the main suspect.
Police said Ms. Yara had been running the enterprise through Thai front men, a practice investigators allege is used to circumvent ownership restrictions and labour rules. Ms. Yara was being sought in connection with alleged illegal hotel operations and attempts to evade Thai employment and business statutes, while the Myanmar workers faced charges for exceeding their permitted work activities.
Part of a national crackdown
Pol. Gen. Phanumat Bunlaksana, director of the immigration bureau, said the Koh Phangan actions formed part of a nationwide campaign to dismantle criminal networks that used foreign-owned shell companies to run businesses illegally. He said the effort was aimed at protecting Thailand’s reputation and enforcing immigration and labour laws.
“We will not tolerate foreigners who use our country as a base for illegal business,” Phanumat said. “Anyone who breaks our laws will face criminal prosecution.”
Authorities framed the raids on the popular tourist island as a warning to operators across other tourism hotspots, saying that investigators were watching locations such as Phuket, Samui and Pattaya for similar violations.
Public reporting and next steps
To widen the probe and gather more intelligence, officials opened a 24-hour hotline at 1178 for the public to report suspicious activity, including foreigners operating businesses without proper Thai licences. Investigators said tips from residents and tourists would be an important part of ongoing enforcement.
Police and immigration officials said further inquiries were under way and that prosecutions would follow where evidence supported criminal charges. The action on Koh Phangan illustrated authorities’ increased scrutiny of foreign investment structures and their use of Thai nominees in the tourism sector.