MGR Online — The Economic Crime Suppression Division (ECD) has dismantled a "Chinese nominee" empire that set up shell companies to acquire 33 luxury homes worth 1.275 billion baht, using Thai nationals as nominee shareholders before selling and renting the properties to customers of the same nationality.
Today (22 Jul.), at the Central Investigation Bureau (CIB), Police Lieutenant General Natthasak Chaowanasai, Commander of the CIB, together with Police Major General Thatpoom Jaruprat, Commander of the ECD, and Police Colonel Chamnan Chanthet, Superintendent of Sub-Division 4, ECD, jointly announced the results of an operation to dismantle a network using "nominees" to hold real estate on behalf of foreign nationals. The operation followed searches at 20 target locations and inspections of residential properties in luxury housing estates in the Phatthanakan Road and Krungthep Kreetha Road areas.
Police Lieutenant General Natthasak said that the operation stemmed from the ECD receiving information from the Department of Business Development (DBD), together with complaints from local residents that large numbers of Chinese nationals were living in the luxury estates, causing disturbances to neighbours. An investigation was launched and eventually uncovered the establishment of shell companies, in which Ms. Piyanut and her mother, Mrs. Sakhon, served as nominee shareholders and directors, while the true controlling figure was Mr. Hao Deng, a Chinese national. The investigation found that a total of 33 companies had been set up to hold 33 luxury homes with a combined value of more than 1.275 billion baht, with all capital belonging to Mr. Hao Deng.
Police Lieutenant General Natthasak added that the searches yielded the seizure of key evidence, including 3 title deeds, 30 sets of sale agreements and ownership documents, 15 multi-nationality passports, 13 electronic devices, banknote-like objects in Thai and foreign currencies valued at approximately 1.4 million baht, 24 sets of company documents and financial statements, and 6 company seals.
Police Major General Thatpoom revealed that the network operated by incorporating companies with Thai nationals acting as "nominees" in order to circumvent laws restricting foreign ownership of real estate. The scheme was broken down into three modes of operation: using nominee companies to purchase 2 homes outright; restructuring the shareholding so that Chinese nationals took ownership upon finding a buyer, accounting for 3 homes; and using nominee companies to purchase 28 homes before renting them out or selling them through Chinese-owned agencies. Officers also found 30 sets of pre-signed blank share-transfer documents bearing the signatures of Ms. Piyanut and Mrs. Sakhon, prepared in advance to facilitate changes in shareholders at Mr. Hao Deng's instruction — reflecting that both individuals served only as named figureheads for the company registrations, while all capital belonged to the Chinese suspect.
Investigators have initially charged the suspects under the Foreign Business Act 1999 for the offence of using Thai nationals as nominee shareholders, as well as offences under the Land Code. The investigation findings are also being prepared for submission to the Land Department to pursue legal action regarding the disposal of the land and structures, while efforts are under way to expand the case and bring all other Thai and foreign individuals involved in the network to justice.
