As studies continue into claims that The image Group ran a pyramid scheme, officials have urged troubled parties to come forward and lodge complaints against suspects in the incident devouring The image Group.
While 18 suspects including the agency’s CEO and founder have been arrested, the forgery incident, one of the largest in recent years, will not be the last as pyramid schemes and other fraudulent investment schemes are also thriving, officials said.
Many people continue to fall prey to scammers because they allow themselves to get drawn into the assurance of quick and easy cash bait, despite the well-known threats and repeated instructions by law enforcement agencies.
People of a pyramid system are frequently promised large gains when they recruit new members. It is frequently designed to return investment made by new traders to earlier investors.
It is designed to appeal to people’s selfishness and need for financial gain, offering high returns on investment, with little or no work required by the buyer.
Many pyramid schemes are often disguised as multi-level marketing ( MLM) businesses or other legitimate investment opportunities.
Scam in mask
The Office of the Attorney-General’s ( OAG )’s ) rights protection and legal aid office’s Kosolwat Inthuchanyong, who spoke to the Bangkok Post, explained that pyramid schemes carried out in secret under the guise of direct selling have been around for a while.
” They respond to people’s ambition and give hope to people who are struggling with the recent economic hardships”, he said.
He claimed that older people and innocent retirees who were conned out of their hard-earned life saving by phony pyramid schemes are among the many subjects.
Scammers, many of whom are stars, typically use beauty, social status and even fake certificates to build trust with potential subjects, he said.
When asked if any laws should be changed to reflect the current situation, he responded that existing laws are sufficient to deal with scammers.
” But some elderly investors must also know their limitations. They must consider whether they are capable of meeting the demanding task of recruiting new members [in pyramid schemes disguised as MLM businesses],” said Mr. Kosolwat. When someone emailed them about the potential risks, some investors were upset.
He claimed that the Office of the Consumer Protection Board ( OCPB), the OAG’s office for rights protection and legal assistance, and the Justice Ministry’s Rights and Liberties Protection Department are responsible for protecting the rights of victims.
Additionally, Mr. Kosolwat noted that fraud victims who lost their money in pyramid schemes in the past had little chance of recovering it.
Many people got only a small portion of their money back.
However, he said, the Anti-Money Laundering Office ( Amlo ) is given the authority to freeze assets owned by scammers in the current anti-money laundering law, allowing it to do so quickly while modern technologies are used to monitor and freeze the online money trail.
Thailand has international agreements with other countries to help victims, he said, even if scammers move stolen money abroad.
” In the past, victims did not get much money back.
The amount of money they have recovered has reportedly increased in recent years. But it is still not worth it, compared to the huge losses, “he said.
” Victims should step forward and file complaints at police stations nationwide, “he said.
The Metropolitan Police Bureau and all nine Provincial Police Regions have been given instructions by national police chief Pol Gen Kitrat Phanphet to establish complaints centers to assist victims of the iCon Group fraud scandal.
As of Saturday, a total of 2, 910 people had filed complaints against the iCon Group, according to the Central Investigation Bureau ( CIB ).
Celebrities under scrutiny
Warathaphon” Boss Paul” Waratyaworrakul, The iCon Group’s founder and CEO and a prime suspect in the scandal, was detained at Bangkok Remand Prison along with 17 other suspects after the Criminal Court approved a police request for detention on Friday.
The 18 suspects, some of them celebrities, were wanted on charges of colluding in public fraud and inputting false information into a computer system. All denied the allegations.
After the court rejected bail requests for three well-known celebrities, the court rejected their requests for bail, citing flight risk, while the others did not apply for release.
The three celebrities are actor Yuranunt” Boss Sam” Pamornmontri, actress Pechaya” Boss Min” Wattanamontree and television show host Kan” Boss Kan” Kantathavorn.
The suspects, referred to as” bosses “within The iCon Group’s marketing hierarchy, were apprehended on Wednesday following numerous fraud complaints.
Victims claimed the business pressured them into making additional financial commitments, leading to significant losses, after tempting them with low-cost online marketing courses.
Saree Ongsomwang, secretary-general of the Thailand Consumer Council (TCC), said The iCon Group registered as a direct-marketing business, not a direct-selling company.
However, what the business has done is selling directly. Therefore, it is against the law,” Ms Saree said.
” The company’s dealers invested 250, 000 baht each to buy products worth the same value. However, some victims claimed that the products ‘ numbers did not match the placed order.
” Does this mean the products and the direct-sale strategy were used to disguise]a pyramid scheme ]”? Ms Saree said.
She urged state agencies to check the company’s dealers ‘ financial records and determine whether it focuses on recruiting customers rather than selling goods, which might be considered a pyramid scheme.
” The money trail of the celebrities]working for The iCon Group ] must also be examined. Any of their ill-gotten gains must be returned to damaged parties”, Ms Saree said.
She claimed that because of their public trust, celebrities are considered influencers. They ought to be cautious and refrain from engaging in any kind of public deception.
” Many people tend to believe in what they say”, she said.
She also expressed concern about scammers turning to some state officials for assistance in exchange for under-the-table currency to make sure their businesses function smoothly.
The government should step in to investigate and punish these officials, she said.
” Growthy motivated”
Rangsit University associate professor of criminology and vice president, Pol Lt Col Krisanaphong Poothakool, said it is crucial for police to discover proof that the organization and its suspects hired new employees.
The main issue is for police to establish whether the suspects recruited new members or allegedly sold products, he said.
Similar scams will occur in the future and more people will continue to be cheated, he said, as long as people are motivated by greed and a strong desire for quick and easy money.
Victim’s account
A 61-year-old woman who requested anonymity claimed she learned about the company’s operations from a television program during the Covid-19 outbreak a few years ago.
Mr. Warathaphon discussed the company’s 97 baht online marketing course during the show, so she made the decision to try her hand and contact the business, she claimed.
She claimed after an online orientation session that she paid more than 250, 000 baht to apply to be a company dealer and to purchase the goods after the people who were above her, also known as uplines, assured her that she would make hundreds of thousands of baht.
She tried using products herself first to evaluate their qualities, but it turned out she did n’t work as well as she had hoped, so she did n’t sell them to anyone.
She allegedly tried to return the goods to the uplines, but was turned down.
They told her that she had to recruit new members and share a portion of her recruits ‘ sales, and that the only thing she could do was do it.
Sopon: Company faces thousands of complaints
Kosolwat: Investors must know their limitations
Saree: Investigators must follow the trail of money
Krisanaphong: People will continue to be cheated