Former advisor to the ombudsman, Natthaporn Toprayoon, and his son, Ratthasit, were taken to the Bangkok Remand Prison on Thursday, after the Criminal Court rejected their bail applications on the grounds that the charges against them carry severe penalties.
The Court also said their alleged offences pose a threat to the Thai economy, they may have caused extensive damage and there is a flight risk.
Natthaporn, 72 and Ratthasit, 50, have been arraigned on money laundering charges in connection with the massive fraud in the Klong Chan Credit Union Cooperatives, committed by then board chairman Supachai Srisuphaaksorn and associates between 2008 and 2012, causing total losses, estimated at 11.8 billion baht, to over 2,200 co-operatives members.
According to the indictment, Supachai and his associates had fabricated loan contracts and financial statements to show that the cooperatives were operating profitably while, in reality, they had suffered huge losses.
Money earned from the sales of 36 plots of land by the cooperatives was paid into the bank accounts of Supachai before being transferred to the accounts of Natthaporn, Ratthasit and other people still on the run.
Supachai is currently serving a 7-year prison term, handed down by the Supreme Court.
