Bangkok Post of July 27
scoop.bangkokpost.co.th
More than 100 people were arrested yesterday in raids on two stock trading "boiler rooms" on securities fraud and money laundering charges in what police say is the largest case of its kind in Thailand.
Foreigners suspected of being illegal stock brokers await questioning at the Crime Suppression Division headquarters. They were rounded up from two stock brokerage offices on Sathorn and Pan roads yesterday. _ SOMCHAI POOMLARD
A total of 85 foreigners and 17 Thais were arrested at the offices of the Brinton Group and Benson Dupont Capital Management, two companies accused by securities regulators of running unlicensed securities services and defrauding foreign investors.
The firms, at Bangkok City Tower and Sethiwan Tower in central Bangkok, could be the headquarters for a securities scheme spanning 70 countries.
Total damages incurred by foreign investors were estimated at A$300 million, or 6.9 billion baht.
Authorities said it was uncertain whether Thai investors were among those defrauded.
The raids were led by the Securities and Exchange Commission, Anti-Money Laundering Office, economic police, immigration and labour officials.
The US Federal Bureau of Investigation and the Australian Federal Police also helped in the investigation.
"We completed the investigation in co-operation with Australian authorities in just one month," said Pol Gen Sant Sarutanont, the deputy Thai national police chief.
The operation "shows our determination in eradicating and preventing financial fraud against foreign investors being carried out of Thailand," he said.
More than 1.5 million baht worth of US banknotes were seized.
Benson Dupont Capital Management could be part of a larger group operating under names including Osiris Asia Pacific, Strategic Alliance Corporation, Sigama Capital Management and Dreyfus Capital.
Brinton group also ran affilated companies identified as Irish Law Co, the Camden Group, the East Asia Medias, the Alabama Engineering, the Pete and Associates, and the ASY Express. Scott Fisher, the company's managing director and a 20% shareholder, was among those arrested. The foreign suspects included 30 Englishmen, 14 Americans, 10 Irish nationals, 10 Australians, 6 Filipinos, 5 Canadians, 2 Singaporeans, and one person each from Burma, Jamaica, Liberia, New Zealand, Malaysia, Spain, Scotland and India.
Pol Gen Sant said the foreigners would face three charges: fraud and money-laundering activities, working without permits and running unlicensed securities companies.
All would be tried in Thailand, he said. If convicted, they could face jail terms of two to 10 years, and fines of up to 200,000 baht. Pol Gen Sant said the 17 Thais, if they could prove their innocence, would be treated as witnesses.
Prasarn Trairatvorakul, SEC secretary-general, said the case emerged after complaints from securities regulators in Australia, New Zealand and Hong Kong about investors receiving "cold calls" from people in Thailand to invest in stock.
High-pressure selling tactics were allegedly used, with investors asked to send money offshore.
"It's very difficult to follow these groups, which move very quickly and conceal their operations by renting 'virtual' offices to act as a switchboard," Dr Prasarn said.
"The calls are then routed to other locations where they maintain a physical presence."More than 100 Australian investors were allegedly contacted. The offices had more than 60 telephone lines put in, with phone records showing frequent calls made overseas. Other evidence included brochures advertising the businesses as securities brokers and investment managers.
One Australian among the foreigners arrested said he had worked with the group for several months.
"I didn't really know what they were doing," the 30-year-old said. "The company hired me as a telephone operator to contact investors and said they'd pay me. So I thought, why not?"Robert Cahill, an FBI legal attache based in Bangkok, said US authorities would co-operate with Thai officials to keep looking into such boiler-room operations.
"It's very common to see scams and swindlers in the US. But now this kind of operation has moved to take root in developing countries," he said.
The SEC warned that another 21 companies running in Thailand had been named in complaints by foreign investors and were potentially running unlicensed securities services.
"Today's case is an example. We want to caution investors, Thais and foreigners, to exercise care before making any commitments," Dr Prasarn said. "We do not want to see Thailand viewed as a centre of international crimes such as this."Prime Minister Thaksin Shinawatra promised a review of visas for foreign workers, and pointed to weaknesses in immigration screening, and lax blacklisting system. |
