Thai investigators raid island over foreign nominee network involving luxury villas and businesses in major crackdown
Police raided island homes over an alleged foreign nominee network involving luxury villas, hotels and property firms in a major crackdown on businesses suspected of illegally operating on behalf of foreign investors.
Lieutenant General Rutthaphon Naowarat, Justice Minister, led a multi-agency operation across Koh Samui and Koh Phangan in Surat Thani province on July 10.
The Department of Special Investigation (DSI) searched five locations after the Department of Business Development identified 34 companies suspected of using Thai nationals as nominee shareholders to circumvent foreign ownership laws.
They raided the J company group, which allegedly used Thai nominees to acquire land and develop luxury villas for foreign buyers.
Investigators said the company built a luxury villa project covering more than 14,000 square metres, publicly advertising it as a Chinese-run development managed by Chinese executives.
The company allegedly controlled a network of businesses involved in construction, land ownership, project management, advertising and property sales.
Authorities said the group owned 97 rai (39.19 acres) of land worth around 1.6 billion baht, while the development itself is valued at 1.6 billion baht.
Financial records showed the company held assets exceeding 1.7 billion baht and processed more than 2 billion baht in bank transactions, most of them incoming transfers from overseas.
Officers seized shareholding records, land ownership documents, accounting files, property sale agreements, construction contracts and financial records during the raids.
In a second case, investigators searched P Law Office on Koh Samui, which allegedly helped foreign investors establish nominee companies.
The law firm reportedly owns five plots of land worth more than 100 million baht and has assets exceeding 300 million baht.
Police said it was linked to more than 150 companies, while its owner and associates allegedly held shares on behalf of foreign nationals.
More than 101 related companies owned property and other assets with a combined historical purchase value exceeding 795 million baht. Investigators claimed the funding originated from foreign investors.
Authorities also found the law firm's address had been used to register more than 103 companies.
The third investigation involved Company B, an allegedly Israeli-owned business suspected of using nominee shareholders.
One affiliated company operated a wellness retreat, yoga centre and treatment facility on Koh Phangan with assets exceeding 100 million baht, but investigators said it did not hold a hotel licence.
The fourth case focused on Company N, a hotel operator on Koh Samui with assets exceeding 2 billion baht.
Police were probing whether the Thai shareholders could afford their shares or were acting as nominees for foreign investors.
While the fifth case involved Company L, a residential construction and rental business with assets exceeding 330 million baht.
Authorities found that its registered address was shared by six other companies with the same Thai and Israeli shareholders and directors.
The DSI said the investigation is continuing as officers examine the companies' ownership structures and trace the source of investment funds.
