Sunday, December 16, 2007

Amlo tracing funding of trading scam offering very high returns

General News - Monday December 17, 2007

Bangkok Post

CRIME CHIT FUND

Amlo tracing funding of trading scam offering very high returns

SUMETH WANNAPRUEK

The Department of Special Investigation (DSI) has asked the Anti-Money Laundering Office (Amlo) to trace the money of a firm running a chit fund offering an unusually high rate of return. Clients were told they are investing in a fund to buy para rubber from Krabi province.

Two suspects _ Amorn-ek Phetluechai, 32, and Pawitraras Kaenchan, 38 _ have been charged with fraud.

Sakda Techakriangkrai, chief of Khon Kaen police, said the suspects had set up Thanin Anant Co in Krabi, and branches in several provinces. They told investors they were buying and trading para rubber, rubber sheets and latex with the promise of high returns.

Mr Amorn-ek was arrested at his house in Bung Kum district of Bangkok on Dec 13 and Mrs Pawitraras was arrested at her home in Muang district of Khon Kaen the following day.

Col Piyawat Kingkate, chief of the DSI special crime division, said the department would investigate where the firm obtained the money to set up the company.

Amlo will be asked to trace the money trail.

Pol Maj-Gen Sakda said each client had been asked to invest 100,000-120,000 baht in the scheme. They were promised monthly dividends of six to eight times their investment.

Police found the company had paid dividends to the investors since 2005. Each investor received 20,000 baht a month on average.

In addition, those who brought new clients to the scheme would get a commission of 5% of the amount invested by the new client.

In August, the firm notified its clients that the business suffered losses. It subsequently delayed paying dividends.

Many demanded their money back but the firm ignored them.

In Khon Kaen, 500-600 people, including merchants and local officials, were victims of the fraud, said Pol Maj-Gen Sakda.

In the South, the company is believed to have attracted over 1,500 clients.

Pol Col Thawatchai Nilanut, head of the investigation team, said police searched the head office of the company on Lanta island in Krabi and found that the firm did not trade rubber sheets as claimed.

Only 1,000 baht was found left in its bank account, said the officer.

His team had subsequently obtained arrest warrants for the two suspects.

No comments: