Ponzi scheme leaders jailed for five years in Thailand

A court has sentenced several people involved in the Nice Day Travel Ponzi scheme to five years in prison each for money laundering related to a fraudulent juice wholesale and tourist accommodation business, involving over 157.8 million baht.

The Department of Special Investigation (DSI) initiated an investigation into the case, designated as Special Case 38/2560, following allegations against Nice Day Travel Co., Ltd., and six associates. They were accused of deceiving the public through advertisements on the LINE application, claiming to be engaged in wholesale juice sales under the Ivy brand, providing tourist accommodations, and selling dolls to tourists.

The company enticed the public to invest by promising returns of up to 240% per year, without any legitimate business operations generating such income. The scheme resulted in 98 victims suffering losses of over 99 million baht.

The Court of Appeals ruled that Nice Day Travel Co., Ltd., the first defendant, must pay a fine of 49 million baht. The second to sixth defendants were sentenced to 490 years in prison each for fraudulently borrowing money from the public, which carries a maximum penalty of up to ten years per offence.

The total prison term for each defendant was capped at 20 years. Additionally, the defendants were ordered to jointly return or compensate the victims for the unpaid amounts, with an interest rate of 15% per year from the date of the loan. The case has now reached its final verdict.

Money laundering charges

Furthermore, the DSI pursued charges against three individuals for money laundering related to the fraudulent scheme, designated Special Case 50/2561. The defendants, identified as Prinya, Jiratha also known as Fai, and Wichai, were found to have engaged in money laundering activities by receiving 117 transfers totaling over 157.8 million baht, which were used to purchase various assets. The Civil Court had already issued judgments regarding these assets.

The Criminal Court sentenced the three defendants to 10 years in prison each. However, their confessions were considered beneficial, leading to a reduction of their sentences by half, resulting in five years in prison for each.

The DSI has issued a warning to individuals involved in organising Ponzi schemes, emphasising the severe penalties, including lengthy prison terms and the possibility of facing criminal charges for money laundering. The Office of Anti-Money Laundering may also seize assets.

Police Lieutenant Colonel Woranan Srilam, Director of the DSI’s Financial Crime Division, warned that not only will offenders lose the chance to use the money, but their families will also suffer, reported KhaoSod.