Koh Samui Villa Scandal Exposes 160-Company Nominee Network
Koh Samui, Thailand—A sprawling investigation into nominee networks operating across seven southern Thai provinces culminated in raids on Tuesday, February 25, 2025. Authorities focused on a luxury villa development project on Koh Samui. Spearheaded by the Surat Thani Provincial Police Investigation Division, the operation targeted seven locations allegedly involved in illegal business practices, highlighting potential misuse of nominee shareholders in the tourism and real estate sectors.
The investigation stemmed from a complaint filed with the Bo Phut Police Station by a civil engineer authorized by the Koh Samui Municipality. The complaint alleged that the «Seabreeze» project, a luxury villa development marketed to foreign buyers, encroached on land on Chaweng Noi Hill, violating the Building Control Act. Suspicions also arose regarding the use of Thai nationals as nominee shareholders, potentially masking foreign ownership and circumventing legal restrictions.
Subsequently handled by the Transnational Criminal and Illegal Immigration Suppression Center, the investigation revealed that a German national owns the «Seabreeze» project, utilizing a local law firm. Investigators found this law firm pivotal in establishing a network of over 160 companies for foreign nationals, encompassing businesses ranging from villa rentals and restaurants to various tourism services across Koh Samui. This broadened the investigation from a localized land dispute into a probe of a potentially vast nominee network.
Raids involving officers from the Immigration Police, Tourist Police, and officials from the Forensic Science Center 8, focused on seven locations, including the law firm. The six other targets were companies registered at the same address, with foreign nationals listed as directors. Authorities seized numerous documents—company registration papers, accounting records, investment agreements, legal contracts, tax filings, employment records, and computer hard drives—for further examination.
This operation follows a previous report detailing the indictment of sixteen individuals, including a German developer, for property fraud on Koh Samui. This action demonstrates a concerted Thai effort to address nominee ownership, which can obscure illicit financial flows and undermine fair competition in the country’s tourism industry. The ongoing investigation promises to illuminate the intricacies of these networks and their impact on Koh Samui’s economic landscape. The outcome could significantly affect foreign investment and business practices within Thailand’s tourism sector.
