Chiang Mai bank embezzlement scandal: 70 million baht stolen from cooperative

Five former Chiang Mai bank employees, including a former manager, have been accused of forging signatures to embezzle 70 million baht from the San Pa Tong Agricultural Cooperative. The cooperative has had to use reserve funds to pay dividends to its members following the alleged fraud.

Chaiwiset Deesuwan, Chairman of the San Pa Tong Agricultural Cooperative Board, and Suchitra Mano, Cooperative Manager, reported the progress of the case at a recent board meeting. Preliminary investigations revealed that no farm cooperative employees were involved in the alleged fraud. Police have issued arrest warrants for a woman known as “A” (a pseudonym), who falsely claimed to be a bank manager, and four other former bank employees connected to the crime.

It is reported that the accused individuals persuaded the cooperative board to deposit a large sum of money in a particular bank branch in Chiang Mai, offering high-interest rates as an incentive. The cooperative officials deposited 20 million baht initially and eventually added a total of 70 million baht to the account. However, funds began to disappear in February 2021, with only 9,000 baht remaining in the account by September 30, 2022.

The case was filed on January 19 2023 against the bank’s management and 23 others, accusing them of colluding to defraud the San Pa Tong Agricultural Cooperative of more than 104 million baht, including interest and other damages. The cooperative has been trying to negotiate with the bank to recover the funds.

Chaiwiset urged relevant parties to expedite the bank’s reimbursement to the cooperative, as the funds are needed for the loan and dividend payments to members. Suchitra revealed that the investigation found evidence of forgery and the arrest warrants have been issued for the five individuals involved in the scheme.

About a month ago, a Vietnamese man posing as a Thai citizen was arrested for allegedly forging land documents and attempting to sell them on the market. His fraudulent activities have reportedly caused losses for numerous villagers throughout the northeastern provinces.