A luxury villa empire, Chinese directors, overseas funding and more than 100 companies sharing one address are at the centre of Thailand’s biggest nominee business crackdown as investigators widen a multi-billion-baht probe across Koh Samui and Koh Phangan.
Thailand’s crackdown on foreign nominee businesses has entered a dramatic new phase after Commerce Ministry investigators uncovered a multi-billion-baht corporate network spanning Koh Samui and Koh Phangan, including a luxury villa project promoted as Chinese-owned and managed by Chinese directors and executives. Raids on five locations exposed one address registered to more than 100 companies as investigators traced vast land holdings, overseas funding and complex ownership structures they believe concealed foreign control.
The Commerce Ministry has intensified its nationwide crackdown on suspected nominee business structures after investigators uncovered a striking corporate network spanning the holiday islands of Koh Samui and Koh Phangan.
The operation exposed one registered address being used by more than 100 companies. Investigators are now examining whether Thai nationals were used to conceal foreign ownership of businesses operating in restricted sectors.
On Friday, July 10, the Department of Business Development led coordinated searches across five locations in Surat Thani province. The operation was conducted with the Department of Special Investigation (DSI) and other provincial agencies. Officers executed court-approved search warrants in cases linked to suspected violations of the Foreign Business Act (1999).
Probe targets 34 firms as luxury villa project linked to Chinese management comes under investigation
Accordingly, the searches followed intelligence previously supplied by the Department of Business Development to the DSI. That information identified 34 companies suspected of using Thai nationals as nominees.
Investigators believe the arrangements were designed to circumvent restrictions imposed under the Foreign Business Act. Mr Poonpong Naiyanapakorn, Director-General of the Department of Business Development, said the operation formed part of the ministry’s continuing enforcement campaign.
The largest investigation centres on the J Group of Companies under Special Case No. 93/2569. Investigators believe Thai nationals held shares on behalf of foreign investors. The arrangement enabled foreigners to own land and conduct prohibited real estate business.
The company developed a luxury villa project covering more than 14,000 square metres in Bo Phut subdistrict on Koh Samui. The development was aimed at foreign buyers.
Notably, investigators found the project was openly advertised as being developed by a Chinese company. Chinese directors and executives also played a significant role in setting policy and directing management. Those findings strengthened suspicions that effective control rested with foreign interests rather than the registered Thai shareholders.
Investigators trace billion-baht land assets, overseas funds and an extensive network of linked companies
Further inquiries uncovered a tightly connected corporate structure. At least five related legal entities operated from the same development site.
Together, they controlled project management, construction, land ownership, development, public relations, advertising and property sales. Investigators believe the companies functioned as an integrated business network rather than separate enterprises.
Meanwhile, investigators traced extensive property holdings linked to the project. The company owns 15 land plots in Bo Phut covering 97 rai, 3 ngan and 88.4 square wah. Officials estimate the land alone is worth approximately 1.567 billion baht. The initial project value stands at about 1.6 billion baht. However, investigators believe the completed development could ultimately be worth several billion baht more.
Financial records revealed the scale of the operation. Company financial statements show assets exceeding 1.692 billion baht. Banking records indicate more than 1.987 billion baht has passed through company accounts. Most of those funds originated overseas. In parallel, investigators examined six affiliated companies. Their combined assets exceeded 2.024 billion baht.
Seized records widen inquiry as investigators examine layered ownership structures and financial transactions
During the searches, officers seized extensive documentary evidence. The material included shareholder records, land ownership documents, account records and banking information. Officers also recovered real estate purchase agreements, construction contracts and project models.
As part of the investigation, they obtained details of new developments under construction in the Khao Choeng Mon area near Samui International Airport. Investigators also uncovered records covering numerous financial transactions.
The DSI has since widened its investigation. Officers are identifying additional individuals and legal entities connected to the project. At the same time, investigators are examining ownership structures spread across multiple corporate layers. They are seeking to determine whether those structures concealed the true ownership of assets and business operations.
Separately, investigators searched P Law Office under Special Case No. 94/2569. The inquiry focuses on a legal entity operating in Koh Samui. Its shareholders include Thai nationals, Thai legal entities and Chinese nationals serving as directors and shareholders.
The company operates as a real estate agency and brokerage. It also receives compensation under contractual arrangements. In addition, it owns five plots of land on Khao Phra in Bo Phut. Those properties are valued at more than 100 million baht. Reported assets exceed 300 million baht.
Law office linked to more than 150 firms as investigators examine nominee shareholders and land holdings
Investigators believe the Thai shareholders and Thai corporate shareholders belong to the same group. Officials suspect they acted as nominees for foreign investors. The investigation also identified the involvement of P Law Office itself. That inquiry uncovered links to more than 150 companies operating through related structures.
According to investigators, the firm repeatedly used its own name and those of close associates as shareholders. Those arrangements benefited foreign nationals. Investigators also suspect Thai companies were registered using the same names. Those legal entities held shares on behalf of foreign investors.
Foreign nominee firms still the target of an escalating crackdown and blamed for poor economic growth
Nominee shareholding crackdown is impacting the property market in Phuket and small foreign investors
Perhaps the most significant finding involved the firm’s registered address. Investigators discovered it had been used as the head office for more than 103 legal entities.
They also found that more than 101 linked companies held real estate and other assets valued at over 795 million baht when purchased. Financial analysis suggests the true investment funds originated from foreign nationals.
Searches at the premises yielded further evidence. Officers recovered numerous copies of land title deeds showing ownership by legal entities with foreign directors. The owner of the law firm and close associates held a combined 49% shareholding.
Investigators also seized land purchase agreements, service receipts and documents relating to land trading activities. Land trading remains prohibited for foreign nationals under the Foreign Business Act. The evidence has now been secured under Special Case No. 94/2569 for further investigation.
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Further reading:
Huai Khwang raid shows nominee shareholdings being used by Chinese infiltrating the economy
Sweep of nominee firms and business networks on Koh Phangan. 22 arrested, 200 million in land seized
Anutin visits Koh Phangan as nominee crackdown shows 68% of firms with foreign ownership links
Blitzkrieg on foreign firms and enterprises on Koh Phangan continues with French owned resort busted
Russian-Chinese Koh Phangan alliance to sell drugs to foreigners. Accused entered Thailand illegally
Crackdown aimed at upending foreign business trade moves from Koh Phangan to Phuket. Four arrested
