The Department of Special Investigation (DSI), on Wednesday, conducted an inquiry into illegal housing projects alleged to be operated by a foreign national.
The man, identified to be of British descent, and his cohort, a Thai nominee, conducted several housing estate scams throughout Hua Hin district.
The mentioned Thai nominee served as a front—a legal entity— while the Briton worked behind the illegal housing projects’ operations.
According to the DSI, the British man in question evaded taxes and violated foreign business law.
They were referring to the 1999 Foreign Business Act, which strictly prohibits foreigners from land trading and holding construction businesses.
According to the DSI Deputy Director-General, Pakorn Sucheevakun, 18 individuals, including Thais and foreigners, issued complaints against the Briton, accusing the foreigner of deceiving them.
Pol Lt Sucheevakun added:
“It is an act of taking unfair advantage of customers,” he added. “The action of the foreigner, through the use of the Thai nominee, to run the business […] breaches the Foreign Business Act. This is in violation of the Land Development Act.”
The DSI also alleged that both the Thai nominee and the foreigner defrauded customers by misleading them on the advertisements of the housing projects in Hua Hin.
Police Lt Col Sucheevakun added that some construction projects fell behind schedule and had no permission from the local authorities to conduct the housing projects.
As a result, the houses were not registered to the local government, which means public utilities could not be supplied to the built properties.
The DSI’s investigation also yielded that income from the selling of houses was not used to pay taxes, a move that can be distinguished as tax evasion.
At least 240 million baht in assets owned by the operator has been seized by the authorities, Pol Lt Col Sucheevakun said.
The DSI also will be pursuing charges against the Briton and the Thai nominee for violating numerous other laws.
The DSI Deputy Director-General also stressed the need for stringent enforcement of the Foreign Business Act to hamper the operations of foreigners using locals as fronts to circumvent the law and operate businesses reserved for Thais.
Source: Bangkok Post