Police and Interior Ministry officials have uncovered sixty illegal nominee businesses on Koh Samui, ranging from unlicensed nurseries to a luxury hotel built on land allegedly hidden behind Thai shareholders.
More than 300 police and officials carried out the raid on Saturday, targeting foreigners who used Thai nationals to hold shares or assets on their behalf while running businesses illegally on the island.
Deputy Interior Minister Polapee Suwunchwee said the operation was the seventh in a series of raids on major tourist destinations, following months of investigation. It was led by deputy national police chief Pol Gen Samran Nualma, who takes over as national police chief on October 1.
The scale of the investigation
Officials reviewed all 12,906 registered companies on Koh Samui in recent weeks. Of these, 8,254 had foreign shareholders, and 875 showed signs of Thai nominee arrangements.
Further screening identified 59 suspicious companies holding 37 plots of land and property spanning 31 rai, with a combined value of about 1.2 billion baht (approximately US$36 million). The investigation led to 60 legal complaints against 88 suspects, including 26 Thais and 62 foreigners.
The Koh Samui Provincial Court issued 37 search warrants. Police have arrested 14 suspects so far: four Chinese, four British, and one national each from Italy, France, the Netherlands, Austria, the Philippines, and the United States.
Five networks under investigation
Searches focused on five groups of companies. The first was a nineteen-company network linked to Israeli nationals, using Thai shareholders to front unlicensed preschool nurseries and the sale and rental of luxury villas to foreign buyers.
The second involved four companies linked to German nationals building luxury villas on steep hillsides, potentially in breach of construction regulations. Investigators suspect the villas were sold through nominee company share transfers to dodge land transaction and corporate income tax.
The third group, 27 companies, was set up to help foreigners secure work permits or business visas allowing stays of up to one year. Shareholder records, many listing Thai nationals, did not match the actual investment amounts.
The fourth group, 16 companies, was originally registered entirely by Thais to avoid documentation requirements, before foreign nationals were added to the shareholding structure to obtain work permits and switch to business visas, despite no genuine business activity.
French Embassy tip leads to hotel probe
The fifth group, two companies, was flagged after the French Embassy in Thailand reported a French national accused of defrauding French investors in a cannabis farm scheme, causing losses of 21 million baht (approximately US$634,000).
Surat Thani Immigration investigators found Thai nationals had acted as nominees to help the Frenchman buy land and build a luxury hotel with a swimming pool and tennis court. A concealed lease arrangement was used while the property was advertised online at rates of 11,000 to 17,000 baht (roughly US$332 to US$513) per night, despite holding no hotel operating licence.
Sixth phase of ongoing crackdown
Pol Gen Samran said the operation forms part of a wider, ongoing crackdown on nominee networks across major tourist provinces. Over six phases, investigators have examined 238 companies and 272 plots of land covering 184 rai, worth an estimated 2.8 billion baht, and issued 178 arrest warrants.
He said the goal was to regulate business activity in tourist provinces including Surat Thani, Phuket, Krabi, Phang Nga, Chon Buri, and Prachuap Khiri Khan, ensuring foreign investment complies with Thai law. Police also aim to stop foreign investors from exploiting Thai nationals or their livelihoods, while continuing to pursue nominee networks and any officials involved in corruption.
The story Koh Samui raid uncovers 60 illegal nominee firms as seen on Thaiger News.
