An alleged scam involving around 7,000 victims and over 2 billion baht in damages is making headlines in Thailand. But the country is no stranger to fraudulent pyramid schemes, with the most notorious dating back to the 1970s.
Since then, hundreds of cases have been reported by thousands of victims, claiming combined losses of several hundred billion baht.
These schemes have evolved from simple chit funds run by a small group of fraudsters in bygone times, to complex multi-level marketing (MLM) networks employing celebrities and influencers today.
The repeated success of such scams is attributed to victims’ desire to get rich quick, but also weak law enforcement and corrupt officials who shield fraudsters from legal action in exchange for bribes.
From 2014 to 2020 alone, the Department of Special Investigation (DSI) recorded 1,290 cases of public fraud involving more than 38,800 victims, with combined losses of over 390 billion baht.
The actual number of victims and losses are believed to be much higher, with a DSI study last year estimating that only one in five victims of pyramid scams actually file police complaints.
The study found that many victims were reluctant to come forward for fear of being viewed in a bad light, while others did not want their families to know they had been scammed.
Before news of the iCon Group scandal broke earlier this month, four pyramid schemes had gone down in history for defrauding large numbers of victims and causing huge damages.
Chamoy's oil fund
Five decades ago, Chamoy Thipyaso became Thailand’s most notorious fraudster when she managed to lure over 16,000 people to invest a total of 4 billion baht in her chit fund, with a promised 6.5% return per month, or 78% per year.
Chamoy claimed the fund would invest in an oil business to take advantage of fuel price rises during the global oil crises of the 1970s.
Her story convinced many, as she was an official of the state-owned Thai Fuel Organisation, later the Petroleum Authority of Thailand and now PTT Plc.
The pyramid scheme collapsed after it could not sustain its promised returns.
Thousands of complaints against Chamoy led to the promulgation of a new law to deal with this financial crime. The Emergency Decree on Borrowings Which are Regarded as Public Cheating and Fraud came into force in 1984.
In July 1989, the Supreme Court sentenced Chamoy and her accomplices to 155,005 years each in prison after finding them guilty of all 36,410 charges. However, the felons served a maximum of 20 years, the legal limit for sentences derived from multiple counts.
Chamoy reportedly served only seven years and 11 months after her sentence was twice reduced, and was released in November 1993. She would be 83 this year but has disappeared from public view.
Charter chit fund
Businessman Akeyuth Anchanbutr, who owned Charter Investment Co Ltd, offered returns of 108% per year to victims of what he claimed to be a business trading commodities and foreign currencies.
He managed to lure several hundred victims, who invested more than 5 billion baht in total. The fund was launched in 1983 and grew rapidly after Chamoy’s scam was exposed, before collapsing two years later.
Akeyuth fled Thailand in 1985, only returning in 2004 after the 20-year statute of limitations on the case expired.
In June 2013, he was murdered by his chauffeur, who was later found in possession of millions of his boss's money. The driver was sentenced to life imprisonment.
Forex 3D scam
In 2015, Forex 3D started offering returns of 60-80% to investors, billing itself as an online foreign exchange trading platform. Its founder Apirak Kothi managed to lure more than 13,000 victims who together invested over 2.5 billion baht in the pyramid scheme.
He took advantage of his victims’ trust in the many celebrities he used as influencers.
Apirak and 18 others, including actress Sawika "Pinky" Chaidet and singer Suteewan "Baitoey" Thaweesin, were charged with public fraud in connection with the scheme.
Blissher timeshare fraud
In 1991, a company called Blissher Inter Group started inviting people to invest in what it claimed to be a holiday time-sharing business. The membership fees ranged from 30,000 to 60,000 baht.
It promised the investors free accommodation at leading hotels and resorts for four days each year throughout 20 years, plus free fitness facilities and medical services.
The victims were also promised a 5,000-baht commission for each new member they recruited.
The scheme managed to lure almost 3,000 victims, who together invested more than 2 billion baht before realising it was a scam. Five executives of the company were convicted of multiple fraud charges.
In 2013, they were each sentenced to 120,945 years in prison, but the law limited the maximum jail time to 20 years.
