Foreigners say they were advised into nominee scheme by law firms
Police arrested 13 foreigners during a crackdown on a nominee network today, August 10, after they were found to be illegally owning pool villas and properties in Hua Hin, Prachuap Khiri Khan, through a nominee scheme.
More than 200 police and government officials launched an operation named “Crackdown on Foreign Nominee Networks Phase 6” targeting houses and pool villas in Thap Thai subdistrict, Hua Hin district, Prachuap Khiri Khan. Each property was reportedly valued at about 10 million to 20 million baht.
Investigators identified six companies connected to the properties and found that the companies were registered using Thai nationals as nominees.
Following the investigation, police obtained arrest warrants for 45 foreign nationals and summonses for 39 Thai nationals.
During the operation, officers arrested 13 foreign suspects, including three British nationals, one Italian national, four Chinese nationals, one French national, one Dutch national, one Austrian national, one Filipino national and one American national.
Police said some foreigners told officers that they wanted to own property in Thailand and law firms and accounting companies had advised them to establish companies to hold the properties. They believed the arrangements were lawful.
Some of the Thai nationals used as nominees admitted that they held shares on behalf of foreign nationals without making financial contributions to the companies.
Officers seized company registration documents, accounting records, computers, mobile phones and other electronic data during the searches.
The seized material will be examined to trace financial transactions and identify other people who may be connected to the alleged nominee network.
The Hua Hin nominee network investigation is part of a wider nationwide campaign targeting alleged nominee arrangements involving foreign investors in major tourist destinations.
Police said the previous five phases of the campaign covered six provinces, including Surat Thani, Phang Nga, Phuket, Krabi and Chon Buri. Investigators examined 233 plots of land and buildings, with an estimated value of about 2.5 billion baht.
Across those earlier operations, courts approved 133 arrest warrants, while 20 cases have resulted in convictions, according to police.
Police said they would continue to target foreign investors and nominee networks suspected of operating businesses illegally in tourist areas across Thailand.
Officers would examine whether any government officials had been involved in corruption or provided assistance to people allegedly connected to offences.
