Thailand’s celebrity-obsessed public was left reeling in 2024 when numerous idols were accused of shocking confidence crimes.
Actors, prominent business executives and even a doctor were named in thousands of police complaints filed by individuals who entrusted their money to these celebrities, relying on their public reputations.
Notable examples of celebrities implicated in alleged fraud this year included executives of e-commerce company The iCon Group and Dr Boon Vanasin, founder and former chairman of Thonburi Healthcare Group (THG).
The iCon case also spawned allegations that politicians and whistleblowers extorted money from the company’s bosses in exchange for promising to help them evade legal trouble.
In November, news that Dr Boon – an executive-cum-investor with decades of experience in the hospital industry – was the subject of an international manhunt after fleeing the country with at least 7.5 billion baht allegedly scammed from over 240 investors sent shock waves through Thailand.
The kingdom is no stranger to fraudulent pyramid schemes, with hundreds of cases snaring thousands of victims and causing losses of several hundred billion baht over the past few decades.
The schemes have evolved from simple chit funds run by small groups of fraudsters in the 1970s, to complex multi-level marketing (MLM) networks employing celebrities and influencers today.
E-commerce or pyramid scam?
The iCon Group had been operating as a direct-selling company for six years, before a flood of complaints spurred police to investigate its operations in October.
More than 9,400 of the company’s freelance dealers claimed iCon had cheated them out of nearly 3 billion baht in total.
The dealers had paid between 2,500 and 250,000 baht for iCon accounts selling its health and beauty products.
Some reportedly paid more than 1 million baht for multiple accounts in a bid to make rapid profits. Many dealers recruited others in the hope of making more money and earning iCon rewards such as luxury cars and overseas trips.
In mid-October, police arrested Warathaphon "Boss Paul" Waratyaworrakulm, iCon’s founder and chief executive, along with 17 other company executives, including actor Yuranunt Pamornmontri, actress Pechaya Wattanamontree, and television host Kan Kantathavorn.
They were charged with defrauding the public and entering false information into the computer system.
All 18 suspects remain in detention pending the police investigation.
The Department of Special Investigations (DSI) took over the case and brought three more charges against the 18 executives and the company – fraudulent borrowing (a pyramid scheme), breaking the direct marketing law, and operating without a permit.
The DSI last week submitted its 340,000-page case report to public prosecutors.
The agency is also investigating iCon for suspected money laundering and tax and accounting breaches, DSI director-general Police Major Yutthana Praedam said.
‘Bribery and extortion’
Many suspect iCon Group’s exponential growth, despite its dubious business model, was enabled by corrupt officials. Authorities had received complaints about the company from its early days but failed to act.
Police discovered audio recordings in Boss Paul’s phone indicating he had bribed officials and politicians to ward off legal issues that could threaten iCon Group.
Former Palang Pracharath Party spokesman Samart Jenchaijitwanich was arrested along with his mother in mid-November on charges of extortion and money laundering.
The DSI says the politician received 3 million baht from iCon executives via his mother’s bank account.
The same month saw police interrogate actor-turned-politician Rattapoom “Film” Tokongsup over a recorded phone call in which he seemed to demand 20 million baht from an iCon executive.
Consumer rights whistleblower Kritanong Suwannawong, also implicated in the call, was arrested on charges of extortion and soliciting a bribe.
From fame to infamy
Dr Boon, 86, absconded overseas as eight of his suspected accomplices – including his ex-wife and daughter – were arrested in late November on charges of public embezzlement and borrowing fraud.
He faces charges of public embezzlement, borrowing fraud, money laundering, and issuing dud cheques.
Police say he exploited his reputation as a successful hospital tycoon to lure large investments in five healthcare projects that “never existed”.
Boon offered investors attractive rates of return but paid them with post-dated cheques that couldn’t be cashed.
Victims said he made the early payments as promised to build confidence among investors, before failing to deliver when larger payments were due.
