Two Thais, five Taiwanese arrested in Pathum Thani nominee network bust

Seven suspects, including two Thais and five Taiwanese nationals, were arrested after immigration police dismantled an alleged transnational nominee-shareholding operation that uncovered 27 companies registered at a single house in Sam Khok district of Pathum Thani on Tuesday.

Officers from Pathum Thani Immigration Office and Sam Khok police station led a joint force to search a house in Village Moo 4 of tambon Sam Khok on Tuesday. The operation was in accordance with an arrest warrant issued by the Pathum Thani Provincial Court, authorities said on Wednesday.

During the operation, seven men - two Thai nationals and five Taiwanese nationals – were apprehended. They were identified as Songwut, 52; Ekarat, 27; Chueh Ming-ke, 56; Su Weiyi; Hao Chuan Yang, 28; Kuan Feng Li, 56; and Wang Cheng Yu, 56.

Mr Songwut (whose surname was withheld) identified himself as the owner of the house and cooperated with the search.

Investigators found that the house had been operating as an accounting office providing company registration services and financial consulting. It was also registered as the official business address of 27 different companies. The ground floor was even set up as a mock office for companies registered through the location.

According to the investigation, several companies had been established with registered capital of 10,000 baht, with Taiwanese shareholders holding 49% of the shares and Thai shareholders holding the remaining 51%, in line with foreign ownership restrictions.

During questioning, the house owner, who acted as the company-registration facilitator, reportedly admitted registering 17 companies on behalf of 17 Taiwanese clients. He was tasked with finding Thai nationals to act as shareholders so the companies could be legally incorporated.

According to his statement, all of the Thai nominee shareholders were acquaintances who were either unemployed or working as delivery riders. Between 12,000 and 15,000 baht was paid for each company registration.

Further examination found that bank accounts belonging to some of the companies were linked to cases reported through the national online complaint system.

Financial records showed more than 130 million baht in circulation through certain corporate accounts within a five-month period.

Police seized company-registration documents, copies of Taiwanese passports connected to all 17 companies, and numerous corporate rubber stamps as evidence.

The Thai suspects were charged with assisting, supporting or participating in businesses operated by foreign nationals without the required legal authorisation, including acting as nominee shareholders in violation of the Foreign Business Act.

The Taiwanese suspects were charged with allowing Thai nationals to act as nominee shareholders on their behalf and with operating businesses in Thailand without the required authorisation under Sections 36 and 37 of the Foreign Business Act.

All suspects were handed over to investigators at Sam Khok police station for legal proceedings.

Rubber stamps are seized from a house in Pathum Thani following a crack down on a transnational nominee network in Pathum Thani. (Photo supplied/Pongpat Wongyala)