Israeli entrepreneur, 33, arrested on Koh Phangan for running an illegal motorbike rental business from his home. Police seized 15 bikes, 386 contracts, and say he earned ฿3 million a year. Suspect claims it was a legal extension of his Phuket property firm.
An Israeli entrepreneur arrested on Monday at a motorbike rental business on Koh Phangan has denied any wrongdoing and disputed the grounds for his arrest. The man, identified as Mr Pavel, claims the operation is a legitimate business and an extension of a bona fide property company he controls in Phuket. Despite his claims, police proceeded with the arrest and he remains in custody. A case file is being forwarded to the local prosecutor. Mr Pavel is accused of illegally operating a business as a foreigner. Additionally, he faces charges of working outside the scope of his valid work permit issued for the property company. The investigation and subsequent raid followed complaints from customers over excessive rental fees.
Police in Surat Thani Province have arrested an Israeli businessman for illegally operating a motorcycle rental service. The arrest followed multiple complaints from tourists about excessive fees and questionable practices.
The operation took place at 11:30 a.m. on Monday May 12, 2025. It was carried out by a joint task force of Surat Thani Provincial Police, Tourist Police, Koh Phangan Police officers, and local administrative officials.
Authorities moved in after weeks of investigation. They discovered that the foreign man was running a rental business without legal authorisation.
Police arrest Israeli national after raid on unlicensed rental operation at his home in Koh Phangan sub-district
The suspect, 33-year-old Mr. Pavel, was detained at his unregistered residence in Moo 4, Koh Phangan sub-district. His home also served as his company’s main office.
During the raid, police seized 15 motorcycles still on site. They also confiscated 15 helmets, 109 spare motorcycle keys, and 51 registration books. In addition, officers collected 386 lease contracts used in the rental operation.
Pavel admitted to managing the business. He told police he had expanded into motorcycle rentals from his original work in real estate.
According to Pavel, he holds a work permit as general manager of a company registered in Ratsada, Mueang district, Phuket. However, his permit only covers real estate activities—not rentals or vehicle leasing.
Even so, Pavel said he launched the motorcycle service specifically for foreign tourists visiting Koh Phangan.
The business operated primarily online. He advertised through a website and used social media to find customers. Most transactions were cashless. Tourists booked online and paid via bank transfer.
Israeli says he ran a legitimate online business but used a Thai woman’s bank account for daily transactions
At the time of his arrest, Pavel had around 90 motorcycles in his fleet. He said he sourced them at discounted rates from Facebook groups. He admitted buying from both Thai nationals and fellow Israelis. According to police, many of the motorcycles were never properly registered.
Police noted that Pavel’s rental scheme had earned him around ฿3 million —roughly $91,000—in profits over the past year. Although he operated without legal documents, Pavel handled all business as if legitimate. He issued contracts and required security deposits.
However, his business used a Thai woman’s bank account for financial transactions. She has not been named, but police believe she knowingly assisted him. Therefore, authorities are now tracking her down. She may face charges for aiding in unauthorised business activity.
Under Thai law, foreign nationals are not allowed to run certain types of businesses unless granted permission.
Vehicle rental is one such restricted industry. As a result, Pavel has been charged with conducting business illegally as a foreigner. He also faces charges for working beyond the scope of his authorised employment.
Investigators link the case to growing trend of foreign-run businesses bypassing Thai legal requirements
The seized motorcycles will be held as evidence. Investigators are now reviewing the lease contracts to identify customers and trace the money trail. Police say the case reflects a growing trend of foreigners using local fronts to bypass Thai business laws.
Surat Thani officials stressed the importance of regulating tourist-related services, especially on popular islands like Koh Phangan.
Colonel Chokdee Rakwattanapong, who led the raid, said the crackdown followed direct complaints from travellers. “Tourists said they were charged too much,” he noted. “Some didn’t receive proper documents or refunds.”
Authorities had received multiple tips over the past several months. Consequently, they launched surveillance and began interviewing renters and local residents. The residence where Pavel was arrested had no business licence. Nor was it listed in any company registration records.
Officials believe Pavel used the address purely as a base for his rental operation. It also stored spare parts, helmets, and additional motorcycles awaiting service. Although he attempted to present the operation as a legitimate business extension, police say no supporting paperwork was ever filed.
Israeli suspect remains in custody as police urge foreigners to comply fully with Thai business laws
Pavel remains in police custody at Koh Phangan Police Station. Investigators are preparing to forward the case to the provincial prosecutor.
Meanwhile, police have urged other foreign operators to ensure their businesses comply fully with Thai law.
They also warned locals not to allow their bank accounts to be used for illegal commercial activities. Investigations into the financial links and ownership of the motorcycles are still ongoing. More arrests may follow if further wrongdoing is uncovered.
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So far, no tourists have been charged or implicated. However, some may be asked to provide testimony regarding rental conditions and fees. Koh Phangan continues to draw thousands of visitors every month. Therefore, officials say they must protect tourists and ensure fair treatment.
Surat Thani police promised further inspections of rental businesses on the island in the coming weeks.
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