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Chinese suspects arrested for B7bn investment scam
Trio wanted in China for touting fake IPOs to thousands of compatriots
Three Chinese nationals accused of orchestrating a massive investment fraud that cheated 10,000 victims out of 7 billion baht have been arrested in Bangkok and Chiang Mai.
Officers from the Economic Crime Suppression Division and the Chiang Mai Immigration office apprehended the three suspects — Yang, 41, Wang, 46, and Li, 46 — at a condominium in Huai Khwang district of Bangkok and a house in Hang Dong district of Chiang Mai on Friday. Their full names were not disclosed.
The suspects were wanted on warrants issued by the Chinese Ministry of Public Security on charges of illegally accepting deposits from the public. Their Chinese passports had also been revoked.
Investigators said the suspects had registered Jihui (Hainan) Enterprise Management Consulting Co in China and launched a campaign to solicit funds from the public without authorisation.
They promised high returns by investing in shares of companies preparing for initial public offerings (IPOs) within the next three to five years. To bolster credibility, they developed an investment app called Jihui Jinfu, guaranteeing annual returns of no less than 12%.
The investigation found that the scheme attracted more than 8,000 investors, causing losses estimated at 1.6 billion yuan or 7 billion baht.
Police question two Chinese fraud suspects at a condominium in Bangkok during a raid on Friday. (Photo: Central Investigation Bureau)
Investigators said the fraudsters created a convincing image of legitimacy, claiming to invest in pre-IPO stocks of high-potential firms. Victims were told that once the companies went public, share prices would soar, multiplying their investments.
However, funds transferred through the app were never invested. Instead, they were controlled by the company’s finance department and the three ringleaders: Mr Yang oversaw daily operations, Mr Li handled marketing and client acquisition, and Mr Wang managed finance and administration.
When the time came to pay returns, the company failed to deliver, leaving investors empty-handed.
The three suspects later fled China and travelled to several countries before entering Thailand, where they hid in different provinces. Investigators also found they attempted to deceive authorities by applying for student visas, claiming they had come to Thailand to study.
Chinese authorities later revoked the suspects’ travel documents and coordinated with Thai authorities, leading to their arrest.
During questioning, Mr Li denied involvement, claiming he was merely a nominee account holder, Thai police said.
Mr Yang and Mr Wang said that they had kept a very low profile in Thailand, living in a condominium, rarely going out or socialising, and stockpiling supplies in their rooms to avoid detection.
Thai authorities have revoked their permission to stay in the kingdom and issued deportation orders. The suspects are being detained pending deportation to China.
