American arrested for violating Foreign Business Act in Thailand

An American citizen was arrested by Thailand’s Department of Special Investigation (DSI) for allegedly violating the Foreign Business Act. The arrest stemmed from accusations of unlawfully redirecting profits from property sales by Anchan Villas, a luxury villa estate developer.

The individual, identified as David, was apprehended at the entrance of Jomtien Hospital in Chon Buri around 11 a.m. last Thursday, according to the DSI’s report. He was sought under an arrest warrant issued by the Criminal Court on December 19, 2023.

David’s Violation of Foreign Business Act

David faces charges for failing to prevent a violation of the Foreign Business Act, B.E. 2542, in his capacity as a partner director or authorized person representing a juristic person. The case involves a legal consulting firm operating in Surat Thani and Phuket, with executives including British national Markus and American national Paul.

According to the DSI report, these executives facilitated a Thai employee to act as a front to establish Sunny Shores Property Co Ltd, which then held shares in various companies in Surat Thani and Phuket.

The report detailed that when foreigners purchased land, the holding companies would sell their shares or close the original company, allowing foreign customers to take over and occupy the land, thus benefiting from the land sales profits.

David, associated with Leaf Lucky Co Ltd, was involved in purchasing land from Anchan Villas Co Ltd for real estate development. The report clarified that such transactions constituted real estate trading, which is prohibited for foreigners.

David had fled but was apprehended after investigators requested a court-issued arrest warrant. The arrest was conducted under the orders of DSI Deputy Director-General Police Lieutenant Colonel Yutthana Praedam, who is currently acting as the Director-General of DSI.

It’s noteworthy that the arrest coincided with Lt. Col. Yutthana’s visit to Phuket for an investigation into an elephant park run by Swiss expat Urs Fehr and his wife, Khanuengnit.

“While Anchan Villas’ properties were implicated in the illegal profit diversion, the developer itself has not been accused of any wrongdoing according to the DSI report.”

Anchan Villas’ properties were linked to illegal profit diversion, yet the developer remains unaccused of wrongdoing per the DSI report. This highlights a distinction between property involvement and direct culpability, emphasizing the need for thorough investigation to accurately attribute responsibility in legal matters.

Based in Cherng Talay, Anchan Villas is engaged in multiple luxury villa projects in Phuket and has received recognition for its work in the real estate sector.