BANGKOK: Thai economic crime police have launched legal action against an alleged Chinese-backed nominee network accused of using 33 companies to acquire luxury homes worth more than 1.275 billion baht in eastern Bangkok.
The Central Investigation Bureau’s Economic Crime Suppression Division announced the results of the operation, dubbed “Dismantling the Chinese Nominee Capital Empire”, on July 22.
Police said the investigation identified 33 luxury houses allegedly acquired through companies using Thai nationals as nominee shareholders.
The properties are located in three housing developments along Pattanakarn and Krungthep Kreetha roads.
Authorities are pursuing legal proceedings against people and businesses allegedly involved in the operation, while property and evidence linked to the case have been seized for further investigation.
Pol Maj Gen Thatphum Charuprat, commander of the Economic Crime Suppression Division, said the investigation began with information from the Department of Business Development and complaints from residents in the Pattanakarn and Krungthep Kreetha areas.
Residents had reported disturbances involving Chinese nationals living in luxury housing developments, prompting officers to examine properties in five residential projects.
Police alleged that a Chinese national identified as Hao Deng directed the operation and provided the money used to establish companies and purchase the homes.
Investigators said he worked with a close Thai associate, Piyanuch, and her mother, Sakhon, to register more than 33 companies.
A law firm and an accounting company allegedly handled the company registrations and related documentation.
Police suspect the companies were established to conceal the true source of the funds and allow foreign nationals to obtain control over residential property through Thai nominee shareholders.
After examining financial transactions and questioning witnesses, accounting representatives and property agents, investigators divided the alleged arrangements into three categories.
In the first arrangement, companies using Thai nationals as nominee shareholders allegedly purchased or reserved two houses with money supplied by Hao Deng.
The second arrangement covered three properties. Police said company shareholding or directorship structures were changed to include Chinese nationals after Chinese customers agreed to purchase the houses.
The remaining 28 houses were allegedly purchased through companies established with Thai nominee shareholders and funded by Hao Deng.
A Chinese-operated property agency was then used to find customers to rent or purchase the homes, according to investigators.
Police alleged that the companies’ registered capital and the money used to pay for the properties ultimately came from Hao Deng rather than the Thai shareholders listed in company records.
The Economic Crime Suppression Division searched 20 locations between June 26 and July 7 as officers expanded the investigation.
Police subsequently examined financial trails and questioned witnesses and representatives of the accounting and property-agency businesses allegedly connected to the network.
Authorities said they were investigating the roles of all people involved, including the Thai shareholders, company directors, lawyers, accountants and property agents.
The investigation is expected to determine whether the Thai shareholders exercised genuine control over the companies or were used only to satisfy legal ownership requirements.
Police said officers had seized three land-title deeds and 30 sets of property sale agreements and ownership documents.
The evidence also included 15 passports issued by several countries and 13 electronic devices.
Officers recovered items resembling Thai and foreign banknotes with an estimated combined value of about 1.4 million baht.
Investigators also seized 24 sets of rental agreements, receipts, company records and financial statements, along with six company seals.
The documents and electronic devices will be examined to trace the source and movement of the money and identify other people or companies that may be connected to the alleged nominee arrangements.
Police said the investigation remained under way and further legal action could follow as officers reviewed the financial and corporate evidence. – The Nation/ANN
