Minister Joins Raids on 5 Nominee Companies in Thai Resort Islands

Justice Minister Pol. Maj. Gen. Rutthapon Naowarat, alongside a Department of Special Investigation (DSI) team, led raids on five suspected locations on Koh Samui and Koh Phangan on July 10. These operations targeted businesses allegedly involved in illicit nominee land ownership by foreigners, circumventing restrictions under the Foreign Business Act B.E. 2542 (1999). The searches stemmed from a DSI investigation into 34 companies suspected of using Thai nationals as nominees. The five companies searched today under warrants issued for suspected nominee tie-ups are as follows: – A Chinese project developing luxury villas on over 14,000 square meters of land, with there being 15 separate title deeds totaling nearly 98 rai (approximately 39.5 hectares). The land is valued at around 1.567 billion baht while the project itself is valued at approximately 1.600 billion baht. This company has assets exceeding 1.692 billion baht, with a turnover of over 1.987 billion baht, and also has six affiliated companies with combined assets exceeding 2.024 billion baht. Authorities have seized key documents to expand investigation into the network. – A law firm linked to 150 companies with close associates used as nominees for foreign entities in 101 of them. These firms hold real estate valued at over 795 million baht, and around 103 companies are using this law firm as their headquarters. Authorities have seized title deeds, contracts, and financial records for further investigation. – A network of Israeli companies, with there being at least five affiliated firms, operating hotels and advertising themselves as therapy and yoga centres on Koh Phangan. Assets totalling over 100 million baht and licences to operate such businesses are being investigated. – A company operating a hotel on Koh Samui, with registered capital of 45 million baht and owns 2 rai and 2 ngan of land. It has assets exceeding 2 billion baht. DSI is investigating the source of investment funds and the ability of Thai shareholders to pay for their shares, to determine if there is any nominee ownership. – A company that built and operates a resort with assets exceeding 330 million baht. It owns three plots of land and shares the same address as six other affiliated companies, one of which owns eight additional plots of land valued at over 30 million baht. The resort primarily caters to foreign tourists with the true nature of its business currently being verified. The DSI team confirms that this operation aims to prosecute those using fraudulent corporate structures to circumvent the law, not legitimate foreign investors. Investigation will be expanded to include all involved parties at every level to protect the country’s economic interests and stability. Information Source: Thai Newsroom