Crime

Chinese Gangsters Laundered Millions Through Thailand

Chinese Gangsters Have Laundered Millions Through Thailand

Chinese gangsters operating in Thailand are raising awkward questions about how foreign criminals have freely laundered millions of dollars in illicit funds through the country.

The scandal began in late October, when Thai police conducted a nationwide anti-drugs operation and discovered a massive illegal nightlife den called Jinling hidden behind a car wash in Bangkok’s Sathorn commercial district.

It catered to a nearly exclusive Chinese clientele, serving up bags of ketamine and other party drugs in karaoke rooms that raged all night, with guests able to stash any unfinished drugs for their next visit.

Similar raids in the resort town of Pattaya discovered threads connecting several suspected Chinese criminals to authorities who had apparently not seen these anything-goes nightlife venues despite drawing thousands of visitors each night.

Over the next few weeks, raids uncovered a staggering list of assets derived from those illegal nightclubs, including a US$5.7-million (S$7.7-million) mansion, supercars, millions of US dollars in cash, and stashes of methamphetamine hidden away inside luxury condos in some of Bangkok’s most exclusive buildings, apparently stockpiled for sale at the clubs.

Arrests have since led to the identification of five suspected Chinese gangs operating criminal enterprises using student visas and forged Thai identities. One alleged ringleader detained in early November even had a phony Chinese embassy car and a police escort motorcycle.

But one suspect in particular has come under scrutiny: Tuhao, also known as Chainat Kornchayanan.

On November 23, he turned himself in to police as a Chinese national with Thai citizenship. He denies the drug and money laundering charges levelled against him.

“Tuhao is married to the niece of Police General Pracha Promnok [a former Justice Minister],” Thailand’s top cop, Lieutenant-General Surachate Hakparn, who is in charge of the crackdown, told reporters last week. “It’s no surprise that he knows a lot of police officers and former ministers.”

However, he stated that the gangsters with Thai IDs must have gotten around the kingdom’s strict immigration laws.

“We need to look into which local officials assisted them,” he said. “We’ll get to the bottom of it, and anyone involved in this illegal trade will face legal consequences. They will not escape.”

Alleged Triad Kingpin Surrenders, US$68 Million in Assets Seized

Tuhao’s assets have been seized totaling more than 5 billion baht (S$194.5 million), including a jet, land, and three mansions, while the Chinese ownership of dozens of luxury houses in prime Bangkok developments is being investigated for links to his associates.
‘Zero-cost tourism’

Tuhao is credited with pioneering the “zero-dollar” tourism trend, which brought a flood of Chinese visitors to Thailand in the years preceding the pandemic.

The concept pushed Chinese visitor numbers to a record of around 10 million in a few short years, but it collapsed in 2018 after an overcrowded ferry sank in Phuket, killing scores of Chinese tourists and exposing a business model based on cheap packages with money spent in a closed loop of Chinese businesses, leaving little on Thai soil.

In many resort areas, however, the money made at the time still dominates business ownership.

“These people are too powerful,” a veteran tour guide told This Week in Asia in Pattaya, one of the main areas targeted by the zero-dollar tours. “They may have been arrested now, but I’m afraid they’ll be released soon unless the media takes this seriously and continues to investigate.”

Tuhao diversified into nightlife and other businesses during the pandemic, according to Thai police, by using Thai nominees to buy property and establish businesses.

Meanwhile, his ties to those in power have been called into question.

Tuhao made political donations worth around $100,000 through legitimate channels, according to the ruling Phalang Pracharat Party, which is being investigated by the Election Commission.

Police are investigating how Tuhao obtained Thai citizenship after only a few years in the country and are looking for other potentially hidden assets and bank accounts. As the scope of his network expands, several police officers and other officials are being investigated across the country.

“Remember, we’re fighting super-rich people with enormous wealth,” Police Lieutenant-General Surachate told reporters this week. “As a result, we must be very thorough in gathering evidence to bring them to justice.”

Tuhao was denied bail by a Bangkok court and has stated that he will prove his innocence during the trial.
Thais are concerned about the future.

Years of apparent impunity are raising difficult questions for Thai authorities about corruption, influence-peddling, and favor-trading for those with money to bend the rules.

“Society should join me in wondering how someone like Tuhao has amassed more than 5 billion baht in just ten years.” Chuwit Kamolwisit, a former nightlife tycoon, lawmaker, and part-time anti-corruption crusader, made the announcement to reporters on Wednesday.

Chuwit has led the charge against the Chinese gangsters, holding near-daily press conferences to reveal the main suspects’ alleged wealth, connections, and finances.

He claims that during the pandemic, the gangs devised a plan to stay in the kingdom and bring thousands of their compatriots with them. He claims it involved paying Thai immigration officials to allow them to set up bogus foundations, which they then used to obtain volunteer visas.

According to Chuwit, at least 3,000 Chinese people have entered the kingdom through this route, many to run illegal businesses and launder dirty money.

“How could you fail to protect the Thai people, how could you allow these Chinese dirty businesses to enter?” he asked.

Despite the fact that many of Chuwit’s allegations have been confirmed by Thai police, others remain unproven, they have highlighted the power of illicit Chinese money over entire sectors of the regional economy.

Crime Linked Casino Owner Builds Airport in Golden Triangle

They have even elicited a rare media rebuke from one of the Mekong region’s most notorious Chinese kingpins, Zhao Wei, the publicity-shy billionaire behind the Kings Romans Casino in Laos’ Golden Triangle Special Economic Zone on the Thai border.

“Chuwit, who are you? We’ve never met, so why is he accusing me in this way? “In a rare interview with Thai TV channel The Nation on Monday, he said.

“I’m just a Chinese businessman who moved in and developed this area in order to make it more prosperous. I’m not sure why they believe I’m involved in ‘grey business.’ If they want to accuse me, they need evidence to back it up.”

Zhao Wei was sanctioned by the US Treasury in 2018 for leading a criminal organization engaged in “a variety of horrendous illicit activities, including human trafficking and child prostitution, drug trafficking, and wildlife trafficking.”

As gruesome crime revelations continue to emerge in Thailand, there is growing concern about the potential for Chinese money – both legitimate and illicit – to squeeze Thais out.

A recent Thai government attempt to change the law to allow foreigners to own up to one rai (roughly one-third of an acre) of land was withdrawn in the face of widespread public outrage, primarily due to concerns that speculation by Chinese investors would drive prices beyond the reach of ordinary Thais.

For weeks, the hashtag #ChineseGreyBusinessMoney has been trending on Thai Twitter, where anger over the scale of crime committed by foreigners is growing.

“How can these people buy dozens of houses without raising suspicion?” asked one Twitter user in a post that was shared over 5,000 times. “These guys are travelling across the country like Thais.”

This article first appeared in the South China Morning Post.

Crime

Police Officer Being Ordained at Temple Arrested for Running Scam Call Center

Police in Northern Thailand have arrested a fellow officer as he was being ordained at a temple in Ngao district of neighbouring Lampang province.

Pol Lt Col Bandit Khonkan chief inspector from the Hang Dong police station was disrobed and taken to the Chang Puak station in Chiang Mai. He was arrested on charges of running a call centre scam gang in Chiang Mai Province.

According to Thai Media Chiang Mai Provincial Police Region 5 obtained an arrest warrant for Pol Lt Col Bandit on Friday from the Chiang Mai Provincial Court for procuring illegal telecom equipment, setting up a station and using public airwaves to run a telecommunications business without permission.

Pol Lt Col Bandit reportedly told investigators that he was not the ringleader and was only a member of the gang with Chinese partners.

His arrest followed the apprehension of his 26-year-old daughter, Miss Wanuchapond, 26, and three others during raids at three housing projects in Chiang Mai on Friday, Pol Maj Gen Weerachon Boontawee, deputy chief of Provincial Police Region 5 told Thai media.

During the raids police police discovered around 12 GSM gateways, or SIM boxes, which are devices used for converting cellular networks into mobile phone numbers used domestically.

The chief inspectors daughter Miss Wanuchapond told the arresting officers that she was paid 8,000 baht a month at each of the three locations for renting thr rooms and monitoring devices.

She claimed she had no idea what the devices were and accepted the job because the pay was attractive.

Police investigators working with telecom regulators used a special tracking device to monitor the gang’s communications and learned that its base was in Myanmar opposite Mae Sai district of Chiang Rai.

The call center gang used the GSM gateways to make calls over the internet to scam people in Thailand out of million of baht.

The GSM gateways transmitting signals via SIM boxes to convert them into domestic phone numbers, duping victims into thinking they were being called from Thai government agencies.

Pol Maj Gen Weerachon said that each SIM box held 32 SIM cards, with a capacity of up to 300,000 calls a month. The seized devices had made fraudulent calls over 3.6 million times.

He said the their investigation is ongoing and they are working to track down the remaining conspirators, including Chinese and other Thai suspects.

Authorities are still deciding whether Pol Lt Col Bandit will be dismissed from the force, he said, adding that so far, no other officers are known to have been involved.

Police in Chiang Rai Launch Crackdown on Cyber Criminals in Golden Triangle

Meanwhile, Prime Minister Settha Thavisin has authorized the establishment of an emergency cyber center operated by the Royal Thai Police to combat transnational crimes committed by call center gangs along the Thai border in Chiang Rai province.

On July 19, Prime Minister Settha Thavisin directed the Center to combat information technology crimes. The Royal Thai Police (Royal Thai Police) will crack down on call center gangs in Myanmar, Laos, and along the border.

His directive comes as call center gangs ratchet up their scams to defraud people of their money, causing concern among Thais and jeopardizing the country’s economic and social stability.

Related Police News:

Machete Wielding Man Shot an Killed by Police in Chiang Rai

https://www.chiangraitimes.com/chiangrai-news/machete-wielding-man-shot-an-killed-by-police-in-chiang-rai/

Crime

Thai Immigration Police Arrest Colombian Tourists Over Home Invasions

Immigration police officers have arrested four Colombian nationals in connection with a series of home burglaries at luxury housing complexes in the Bangkok metropolitan area and Chiang Buri Province.

Pol Maj Gen Panthana Nuchanart, deputy commissioner of the Immigration Bureau, told a press briefing that three of the suspects were apprehended in Nonthaburi Province and the fourth in South Pattaya, Chon Buri Province.

According to the Bangkok Post, the Colombians were charged with stealing conspiracy and seized around 3 million baht (US$82,500.00).

According to Pol Maj Gen Panthana, the criminals rode motorcycles through housing estates, scoping out the properties and waiting for the owners to depart before committing their crimes.

He stated that all four of the accused denied any involvement in the home break-ins, but the arresting squad discovered evidence that implicated them.

Police called to home invasion

Meanwhile, police were dispatched to a luxury housing development in Tambon Nong Prue, Chonburi Province, after a Chinese man was attacked during a house invasion.

When they arrived, they discovered the house owner, Mr. Qian Peng Yi, visibly scared and with marks from being tied up with a cable. He informed police that three Chinese males broke into his home at 9 p.m., one of whom brandished a gun at him and directed him to his bedroom.

They bound his hands and feet, gagged him with fabric, taped his head, and forced him into the bed. The intruders then attempted to compel him into transferring 10 million baht in cryptocurrencies to them, endangering the life of his 33-year-old cousin who was in a second-floor bedroom.

While they scoured the house in search of riches, Mr. Peng Yi managed to flee and hide; he subsequently observed them leave with his cousin. Officials investigated the property and analyzed security camera footage from the incident and surrounding areas.

Around 9 p.m., a 30-year-old van driver came at the Bang Lamung police station after being contacted by an agency to carry Chinese customers from Pattaya to Suvarnabhumi Airport.

The driver informed authorities that he was supposed to pick them up at a motel about a kilometer from the Chinese businessman’s home. He then drove them to Bangkok’s Suvarnabhumi airport, arriving at 1 a.m. and receiving 1,800 baht.

The driver took a snapshot of the group smoking at the airport gate and identified one of them as the victim’s cousin. Police suspected coordination between her and the three suspects in her cousin’s heist, who all departed Thailand on the same aircraft.

Other Bangkok News:

Police in Bangkok Discover Six Vietnamese Tourists Dead in 5 Star Hotel

Police in Bangkok Discover Six Vietnamese Tourists Dead in 5 Star Hotel

Crime

Son of Thailand’s Leading Legal Scholar on Corruption Arrested for Running Online Gambling Network

The son of a former senator and leading economist and expert on corruption and gambling in Thailand has been arrested for on charges of running an online gambling network and its payment system.

Police from Thailand’s Technology Crime Suppression Division (TCSD) have confiscated assets worth more than (US$ 11.1 million) 400 million baht.

Narote Piriyarangsan, 33, was arrested following crackdowns in three sites around the city, according to Pol Maj Gen Athip Pongsiwapai, commander of the police Technology Crime Suppression Division (TCSD).

Mr Narote’s father, Sangsit Piriyarangsan, is an economist who has written articles and books about corruption and gambling. He was one of the appointed senators that were investigating the government’s intention to legalize casino gaming before their terms expired.

Police also detained 39-year-old Narayut Narakaew, the owner of the gambling website 69pgslot.com. The Criminal Court issued arrest warrants for the couple for operating an internet gambling service and money laundering.

According to the Bangkok Post, police seized two desktop computers, one laptop computer, 14 mobile phones, 21 bank passbooks, 53 ATM cards, and four high-end cars — a Ferrari 926 GTS, an Aston Martin, a Lexus, and a Subaru — totaling more than 400 million baht.

Police launched the inquiry after discovering the online gambling site, which accepted funds via an automatic deposit-withdrawal system through bank accounts and deposits in the AskMePay system. Players scanned the VPay QR code as well as the QR codes for Heng Online 888 or Heng Pay Company.

Police also discovered that payments received via QR code scans were transferred to the account of Heng Pay Co and then to the gambling website’s mule accounts using AskMePay, which did not use banks’ face recognition scanning. An inquiry indicated a monthly turnover of approximately 5 billion baht.

According to investigators, the website has been up and running for around four years, with the payment mechanism in use for roughly eight months.

According to Pol Maj Gen Athip, Mr Narote owns the gaming website’s payment systems and is the director of Heng Pay Co. After gathering evidence, authorities requested arrest warrants for 14 people.

Thailand does not allow almost any kind of gaming. Even though the law doesn’t say anything specific about online gaming, it is still considered gambling. The country has pretty strict rules about gambling. Thai punters can bet on the national lottery and horse races, but they can’t bet on any other types of games.

But it’s not a secret that there is a huge illegal gaming business in Thailand, even though it’s illegal.

The illegal casinos, online betting shops, underground lotteries, and pop-up bookies that take bets on everything from cockfights to Muay Thai make a shadow economy that is worth billions of dollars every year.