Walls are closing in for ‘pyramid schemes’ in Thailand

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 quick and easy cash bait despite the well-known threats and repeated warnings from law enforcement agencies.

People of a pyramid scheme are frequently promised large earnings in exchange for attracting new members. It is frequently designed to return investment made by new traders to earlier investors.

It is designed to appeal to people’s greed and desire for financial gain, offering great 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

According to Kosolwat Inthuchanyong, director of the Office of the Attorney-General’s ( OAG ) office for human rights, pyramid schemes hacked off the muck of direct selling have been a common practice in the nation for a long time.

” They respond to people’s ambition and give hope to people who are struggling with the recent economic hardships”, he said.

He claimed that many victims range from innocent seniors to elderly people who were tricked out of their hard-earned living savings by phony pyramid schemes.

Scammers, many of whom are stars, typically use attraction, cultural status and even phony credentials to build trust with potential subjects, he said.

He questioned whether existing rules should be amended to reflect the current situation, stating that they are sufficient to handle swindlers.

” But some older owners must also know their limits. They may consider whether they are capable of meeting the challenging task of recruiting new members [in pyramid schemes disguised as MLM businesses],” said Mr. Kosolwat. When people emailed them about the potential risks, some shareholders were upset.

He claimed that the Office of the Consumer Protection Board ( OCPB), the OAG’s office for right protection and legal assistance, and the Justice Ministry’s Rights and Liberties Protection Department are responsible for protecting the rights of patients.

Additionally, according to Mr. Kosolwat, there was little chance of recovering funds lost to fraud victims who had previously lost it through pyramid plans.

Many people got just a tiny portion of their money back.

However, the Anti-Money Laundering Office ( Amlo ) is given the power to freeze assets belonging to scammers in the current anti-money laundering law, he said, while modern technologies are used to monitor and freeze the online money trail.

Thailand has international partnerships with other countries to support patients, he said, even if swindlers move stolen wealth overseas.

” In the past, patients did not get much cash back.

The amount of money they have recovered has reportedly increased in recent years. But it is still not for it, compared to the huge costs, “he said.

” Patients does step forward and report issues at police stations nationwide, “he said.

The Metropolitan Police Bureau and all nine Municipal Police Regions have been given instructions by federal police chief Pol Gen Kitrat Phanphet to establish complaints centers to assist victims of the image Group fraud incident.

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 three well-known celebrities ‘ bail requests were turned down due to flight risks, the court sentenced them to jail, while the others chose not to seek 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 quantity of products did n’t match the given 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 financial activity of the company’s dealers and determine whether the company focuses on recruiting members rather than selling goods, which could be interpreted as 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 they have the trust of people, celebrities are 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 run smoothly.

The government should step in to investigate and punish these officials, she said.

Motivated by greed

It is crucial for police investigators to find proof the company and suspects recruited new members, according to Pol Lt Col Krisanaphong Poothakool, an associate professor in criminology and vice president at Rangsit University.

The main issue is for police to establish that the suspects did n’t recruit new members and instead sold their goods, he said.

Similar frauds will occur in the future and more people will continue to be cheated, he said, as long as people are driven 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, who was on the show, discussed the company’s 97 baht-per-course online marketing course, so she made the decision to try her hand and contact the business.

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 attempted to return the goods to Amazon, but was turned down, she said.

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.