FURTHER VINDICATION!!: "Thai police bust global stock dealing scam BANGKOK, July 26 (Reuters) - Thai police said on Thursday they cracked a major global stock dealing scam, detaining 81 people, including 54 foreigners, accused of cheating investors of more than $150 million.
Police raided two offices in central Bangkok early on Thursday, the culmination of two years of investigation into
complaints by securities regulators in Australia, New Zealand and Hong Kong.
Thailand's Securities and Exchange Commission (SEC) said in a statement Thai and Australian Federal police
as well as the FBI searched the office buildings and detained the suspects, seizing 35 boxes of documents, 20
computers and large amounts of cash.
The firms are suspected by the regulators of being unlicensed securities companies involved in fraudulent
activities against foreign investors, especially in Australia, the statement said.
"The raids were conducted as a result of more than two years of investigation following complaints from (three
regulators) that a large number of investors, especially Australian nationals, have been solicited through
telephone by salespersons based in Thailand to buy shares in another overseas market," it said.
"High-pressured selling tactics were allegedly used and investors were then asked to send money offshore and
had difficulties recovering their investment."
Deputy national police chief Sant Sarutanonda told a news conference the police had not formally charged the
suspects, 17 Thais and 54 foreigners with U.S., Australian, and Irish passports.
"These people don't have a work permit and we need to interograte them first before we can formally charge
them," Sant told reporters.
Sant said the syndicate was one of the world's largest underground stock dealing scams and had stolen around
A$300 million ($153 million) from their victims.
The SEC statement said the two firms, affiliated with each other, had frequently changed their names and
places of business and had transferred large amounts of funds out of Thailand raising concern of their
involvement in international money laundering.
The maximum penalty for fraud in Thailand is seven years in prison. Trading securities without permission
carries a maximum penalty of five years' jail and a 500,000 baht fine, police said.
($1 - 45.6 baht)
07:02 07-26-01 |
