1-11-2023 (BANGKOK) Thai authorities have dismantled a 1.2-billion-baht (US$33 million) online gold investment scam, masterminded by four Chinese nationals and supported by 22 Thai accomplices, marking a significant breakthrough in the fight against fraudulent financial schemes.
The details of the operation were unveiled during a press conference held by the Central Investigation Bureau (CIB) on Tuesday, October 31, shedding light on a sophisticated network of scammers.
In a coordinated effort, CIB investigators conducted raids at 21 locations in Bangkok and seven other provinces, executing arrest warrants for 50 individuals. The result was the apprehension of 26 suspects and the seizure of assets amounting to 30.9 million baht.
Colonel Thirapas Yungyuen, the chief of the operation, explained that the raids encompassed eight locations in Bangkok, six in Tak, two in Pathum Thani, and one each in Samut Prakan, Chon Buri, Surin, and Chaiyaphum. During these operations, authorities confiscated Bitkub digital currency accounts holding a total of 28 million baht, as well as 23 bank books. Additionally, the police seized 21 mobile phones, 19 SIM cards, 100,000 baht in cash, and eight notebook computers.
The heart of the scam revolved around the creation of fake Aurora Gold Trading Facebook pages, which were used to lure unsuspecting victims. These fraudulent pages promised extraordinarily high returns, ranging from 20 to 30 per cent. However, when investors attempted to withdraw their money, the gang resorted to various excuses before ultimately blocking them from the deceptive pages, leaving numerous individuals defrauded by the scheme.
Colonel Thirapas highlighted the meticulous organization of the criminal operation, which included various roles such as buying and creating fake Facebook pages, posting misleading content, engaging with and deceiving victims, receiving funds from victims through mule accounts, and money laundering.
The Chinese leaders of the operation went as far as hiring Thai individuals to establish three nominee companies, aiding them in money laundering. The gang employed three tiers of bank accounts under Thai ownership, before ultimately transferring the funds to accounts controlled by the Chinese ringleaders, who then used three different methods for laundering the illicit proceeds.
The first involved the purchase of goods like fertilizers, air conditioners, and auto parts, which were exported to Laos and Cambodia through a nominee company. They would also acquire digital currencies through Bitkub via another company and invest in properties in Thailand through a third firm.
Colonel Thirapas revealed that a total of 1.2 billion baht was in circulation within these three companies, making this a substantial financial operation.
While most suspects have denied the charges against them, some have confessed partially to their involvement in the scheme, according to authorities.
The modus operandi of this gang was unique in that it operated within Thailand itself, leveraging the internet instead of traditional call-center scams. CIB Commissioner Pol Lieutenant-General Jiraphop Phuridej explained that the CIB had been closely monitoring the four Chinese leaders, who had entered and exited the country multiple times.
The Thai accomplices were predominantly involved in roles such as secretaries, nominee company directors, and mule account holders. The police are now extending their investigations to determine whether the legal advisors of the three nominee firms were aware of the criminal activities.
