Beauty & the bleak: Cops probe iCon brand in ugly Ponzi scandal
Royal Thai Police (RTP) officers are investigating the renowned beauty product and food supplement company THE iCon Group, along with the famous Thai celebrities associated with it, following the bankruptcy of its selling agents and the tragic suicides of some individuals linked to its alleged Ponzi scheme.
THE iCon Group has garnered significant attention in Thailand as numerous investors and agents have fallen victim to its direct-selling and network marketing business model. Many invested in the company, only to find their returns drastically below expectations, driven by the company’s inflated advertising claims.
THE iCon Group was founded by the award-winning CEO Waratphol “Paul” Waratworakul, popularly known as Boss Paul among the company’s agents. He is well known for his motto, “You will never get rich if you’re working hard in the wrong place.”
Boss Paul frequently shared stories of his struggles before becoming the company’s head, recounting how he worked as a waiter and office staff before building his successful business. Remarkably, it took just three years for the iCon Group to generate over 5 billion baht in sales.
According to multiple news agencies, the company promoted itself as Thailand’s leading online sales business, promising life-changing opportunities for those who became agents. Agents were told they did not need to maintain a warehouse or hold stock, and they were offered the chance to win major prizes if they achieved high sales.
However, each agent was required to pay a specific amount for a membership or to gain higher positions in the company. They were also required to pay monthly online advertisement costs of 3,000 to 5,000 baht.
Celebrities inspire confidence
The company often showcased the success stories of its top agents to recruits, displaying luxury cars awarded to successful agents, and offered extensive online marketing courses to help agents boost their sales.
In addition, the iCon Group used famous Thai celebrities to build trust with recruits. Several of these celebrities also held high-ranking positions within the company.
Among the celebrities involved are the well-known TV host Kan Kantathavorn, leading actress Peechaya Wattanamontree, former actor Yuranunt Pamornmontri, and the company’s two main presenters, Pakorn Chatborirak and Pakorn Lum.
For those with limited funds, senior members of the company reportedly encouraged them to sell their assets and valuables to invest in the business.
However, agents struggled to sell the products because the brand was relatively unknown. The company then advised them to recruit more agents rather than focus on product sales, which made the business model appear similar to a Ponzi scheme.
Many agents were unable to sell products or recruit new members, resulting in significant financial losses. Some investors went bankrupt and, tragically, a few chose to take their own lives to escape their debts.
CEO defends himself
CEO Paul recently addressed the controversy surrounding his company, claiming that he was unaware of the bankruptcies and suicides among his agents. He suggested that some of the negative reports might have been fabricated to damage his company’s reputation.
Nevertheless, Paul expressed his willingness to face legal proceedings and offered to compensate the families of those who had died. He also stated he would accept any punishment if it was proven that he or the company had violated the law.
Several Thai news agencies have reported that victims are now gathering evidence and are preparing to file their complaints with the RTP. Some media outlets have indicated that the number of victims in this case may surpass those affected by the recent gold scam involving Mae Tuck and her husband.
If you or anyone you know is in emotional distress, please contact the Samaritans of Thailand 24-hour hotline: 02 713 6791 (English), 02 713 6793 (Thai), or the Thai Mental Health Hotline at 1323 (Thai). Please also contact your friends or relatives at this time if you have feelings of loneliness, stress, or depression. Seek help.
