SURAT THANI - Police will oppose bail when they apply to extend the detention of 21 foreign nationals arrested in connection with the operations of nominee businesses on Koh Phangan in the Samui Provincial Court on Monday.
The arrests were part of a nationwide crackdown targeting foreigners illegally operating businesses through use of Thai nominees.
In the first phase of the operation, on May 13, investigators searched five law and accountancy firms and seized documents for further investigation.
The second phase, launched on May 23, led to the arrest of 21 foreign suspects and the seizure of 38 land title deeds worth about 200 million baht for examination.
Investigators at Koh Phangan police station on Sunday continued questioning all 21 suspects arrested under warrants issued by the Samui Provincial Court.
They were charged with providing false information to officials for entry into public records and unlawfully acquiring land through corporate entities acting on behalf of foreigners, in violation of the Criminal Code and Land Code provisions related to nominee shareholding arrangements.
The group comprises individuals of multiple nationalities including four Israelis, four French, three Russians and two Ukrainians. Others are from Africa, Slovakia, the Netherlands, Australia, Turkey, Germany and the Philippines, with one nationality undisclosed. (continues below)
Pol Maj Gen Suwat Suksri, Surat Thani provincial police chief and head of the investigation team, said on Sunday that investigators had denied the suspects release on police bail.
They would complete questioning before requesting the court approve their detention for the first period of 12 days on Monday, when they would also oppose the suspects' release on court bail.
The case is being expedited, he said. The suspects' detention can be extended for up to 48 days before the case goes to prosecutors.
Investigators were confident of meeting the deadline, aided by the use of the SPNI X analytical programme, developed locally to track drug and money-laundering networks.
The system is being used to analyse financial transactions, trace money flows and compile documentary evidence linking the suspects to nominee shareholding arrangements and unlawful land ownership.
Pol Maj Gen Suwat said the second phase of the operation expanded on evidence gathered during the searches of the five law offices earlier this month. Investigators identified 32 corporate entities suspected of using Thai nominees and obtained 45 arrest warrants for foreign directors linked to the firms.
Police have so far arrested 21 suspects under 22 warrants and seized 38 blocks of land totalling about 38 rai with an estimated value of 200 million baht.
Investigators noted that each company held an average of slightly more than one rai of land, with more than 60% of the land still vacant or under preparation for development.
A source said the investigation found that one company, FB Propertys Co, based on Koh Phangan, was operated by Israeli nationals. The company operated a yoga and food business under the name "The Yoga House Koh Phangan”.
The company, with registered capital of 5 million baht, was found to own eight blocks of land totalling about 7.5 rai and worth an estimated 60 million baht, excluding buildings.
Investigators said financial checks showed the registered Thai shareholder lacked the financial capacity to make the investments, which police said clearly indicated illegal nominee business activity.
