"Candidates Connected to a $2 Billion Condo Venture"
Luxury Condo Scandal Catches Chinese-Backed Group in Thailand
Thai authorities have unmasked a shady Chinese-led consortium, suspected of securing a 2 billion baht property for a swanky Rayong condo project.
The group, notorious for their Thailand-based shadowy companies, snatched 72 rai of land for a whole Chinese operation, from top management to the ground construction work, according to Pol Maj Gen Thatphum Jaruprat, the Economic Crime Suppression Division (ECD) boss.
The dramatic bust-up hit several spots across Rayong and Chon Buri, marking the third operation, following earlier raids in Phuket and Bangkok's Huai Khwang district. Pol Maj Gen Thatphum revealed the action at a press conference on Thursday.
The police confiscated critical documents, charging no less than five Thai and Chinese board members and shareholders, along with supervisory engineers, plumbers, and construction workers.
The construction had already begun on Rayong's plots of land, dubiously acquired by Thai-registered proxies for Chinese investors. (Photo credit: Wassayos Ngamkham)
Officials have cast their eyes on four registered firms believed to be shell companies for Chinese investors. These firms purchased land in Rayong and Chon Buri to erect ten eight-story condo buildings, housing a total of 1,821 units.
The group practiced a sneaky trick: one company held shares for another, concealing the true ownership. Pol Col Wichak Tarom, the ECD deputy chief, divulged that Chinese execs guided the entire project, from the planning phase to construction. Interestingly, they even opened a concrete factory to boost the project.
An investigation revealed over 500 million baht in financial deals connected to a Hong Kong-based entity.
Police seized seven property titles, 48 bank statement books showing 72 million baht in combined balances, a desktop computer, two laptops, three mobiles, land purchase contracts, six company seals, and seven bank tokens. Pol Col Krit Woratat, ECD sub-division 4's chief, shared the information.
The ECD sends the property records to Thailand's Department of Land. The department may compel the companies to alter their ownership ratio or sell the properties to native Thai nationals.
This crackdown, part of the "CIB Nominee Sweep EP.3," follows earlier operations in Phuket and Bangkok. Authorities highlight the intricate company structures to obscure foreign ownership, breaching Thailand’s Foreign Business Act.
The Rayong luxury condo project case echoes the heated debate surrounding foreign influence, such as the cancellation of a Chinese advisor’s appointment in nearby Prachin Buri due to public opposition. Thailand's Q1 2025 investment upsurge, mainly funded by Hong Kong and Chinese investors, reflects the economic tension balanced against regulatory enforcement.
- The Chinese-led consortium, allegedly involved in a luxury condo scandal in Rayong, was accused of securing a swanky Rayong condo project worth 2 billion baht.
- The group's intricate company structures, which included shell companies registered in Thailand, were reportedly used to conceal foreign ownership, possibly breaching Thailand’s Foreign Business Act.
- The ECD's investigation into the scandal uncovered over 500 million baht in financial deals connected to a Hong Kong-based entity, with seven property titles and critical documents being confiscated.
- Officers involved in the case have stated their intent to send the property records to the Department of Land, with the possibility of forcing the companies to alter their ownership ratio or sell the properties to native Thai nationals.
