Multi-billion-baht pyramid scheme magnate arrested in Phuket

PHUKET: A Chinese man who donated 34 million baht to a Phuket temple in July has been arrested along with two other Chinese nationals for their roles in a pyramid scheme that reportedly duped people out of a total of 9 billion baht in China and Malaysia.

In making the arrests, police seized cash and assets valued at more than 240mn baht, including at least 11 land titles for properties in Phuket.

Zhang Jian, 37, and Wang Wenfang, 29, were arrested at a condo in Bangkok’s Pathumwan district on Monday, while immigration police in Phuket arrested Geng Lian Bao at a home in the Land & Houses Park residential estate in Chalong the same day.

In the Bangkok arrests, police seized cash in various currencies worth nearly 1mn baht in total, five Phuket land sale contracts worth 22.3mn, two Phuket land title deeds, Ms Wang’s bank account holdings of 1.5mn baht and the suspects’ fake Thai ID cards.

While arresting Mr Geng in Phuket, police seized 5mn baht cash in various currencies, nine land title deeds worth 200mn baht, gold ornaments worth 2.2mn baht and three cars, as well as his fake Thai ID card.

Four of the deeds were for houses in Rawai and two were for hillside houses in Phuket Town.

Mr Geng was flown to Bangkok, where he and his compatriots were presented to the press yesterday at a conference led by national police chief Gen Somyot Pumpunmuang.

The three were wanted by Chinese and Malaysian authorities for defrauding billions of baht from “members” of a pyramid scheme branded as the multi-level marketing company YSLM, Gen Somyot explained.

Mr Zhang, founder of YSLM, had become well known as the self-branded “World’s Future Richest Man” as depicted on billboards advertising his “marketing” company.

After the press conference, all three suspects were escorted to Phuket, arriving on the island at about 4:50pm. They were then led to a villa in Rawai belonging to Mr Zhang in order to open a safe kept in the house.

However, officers found little in the safe.

“There were not many items of value, just a small amount of gold. We believe that someone is holding cash for him in Bangkok,” Col Saman Chainarong of the Region 8 Police said.

About 100,000 victims in China lost about 1.3 billion yuan (6bn baht) to the scheme, and a further 80,000 victims in Malaysia lost about 300 million ringgit (3bn baht), Col Saman explained.

“The three fled to Thailand and used fake Thai ID cards,” he said.

Mr Zhang, who also went by the name Song Miqiu, was known in Phuket as Supachai Rujjathon, the name on his fake Thai ID card. Likewise, Mr Geng went by the name Surin Sophonsuksan and Ms Wang was known as Pachuachio Saeyang.

Raids on other homes in Rawai owned by Mr Zhang uncovered three other Chinese nationals, as well as four Sri Lankans hired to guard the suspects and their properties.

The Sri Lankans – Hewa Hakuru, Herath Mudiyanselage Dhanushike Srimal, Ravindra Lingeshwaran and Jayatunga Arachchilage – were hired as bodyguards to protect the suspects during meetings with business associates, reported Phuket Immigration Chief Sunchai Chokkajaykij.

“Although police have no evidence against them for any involvement in the business scheme, we revoked their visas as they were not here as tourists,” he said.

Of the three Chinese nationals taken into custody – Liu Haijun, Lu Cunhua and Liu Guijun – Mr Lu and Mrs Liu Guijin have been charged with overstaying their tourist visas.

“They all will be deported,” Col Sunchai said.

It was Mr Zhang’s 34mn-baht donation to a Phuket temple that led to his downfall, Col Saman explained.

“In July, Mr Zhang became a monk for a few days at Charoen Samanakij temple, which is also known as Wat Lang San as it is located behind Phuket Provincial Court,” he said.

“He popped up on our radar after he donated 34 million baht to the temple. We investigated his property holdings in Phuket, and suspected they were bought with laundered money.”

Police are looking for Thais who may have fallen victim to the YSLM scheme, which was launched in June. However, they have yet to uncover any illegal business ventures set up in Phuket.

“They were in the process of setting up a company in Phuket, but the company formation documents were still being processed and had yet to be approved,” Col Saman explained.

“We will charge them with presenting false documents to officials and using fake ID cards. Then we will hand them over to Chinese authorities.”

Additional reporting by The Nation

— Kritsada Mueanhawong