Thailand cracks down on medical glove fraud, Hong Kong company among alleged victims
- Buyers in the US, Hong Kong and France have complained of being cheated out of millions of dollars they paid for undelivered gloves amid the pandemic
- Thai authorities have been cracking down on a surge in rubber glove fraud recently, including the sale of substandard and used gloves
Thai authorities have been cracking down on a surge in rubber glove fraud, including the sale of substandard and used gloves.
Police Lieutenant General Jirabhob Bhuridej said on Wednesday Florida-based company Rock Fintek filed a complaint that Thailand’s Sufficiency Economy City Co. failed to deliver 2 million boxes of nitrile gloves worth US$15.5 million for which it had paid a 40 per cent deposit.
The Thai company’s CEO, Kampee Kampeerayannon, was arrested on Tuesday on charges of fraud and posting false information online, he said. Kampee could not be contacted on Wednesday and his company declined to comment.
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In a separate case on Tuesday, the Thai attorney general’s office announced that a Thai employee of Paddy the Room Trading Co., Pipatpon Homjanya, was sentenced to four years in prison.
Pipatpon was found guilty of producing and trading substandard medical gloves and medical equipment and of using the trademark of other companies without permission, Thai media reported.
The managing director of Paddy the Room, Luk-fei Yang Yang, identified by police and corporate records as Chinese, left Thailand before prosecutors were able to formally charge him in court.
The dealings of Paddy the Room attracted public attention in May when an American businessman who had filed a complaint about being cheated by the company was himself arrested.
Louis Ziskin and several associates were arrested for allegedly detaining a Taiwanese representative of another company, Collections Enterprise, to unsuccessfully pressure it to refund money after Paddy the Room’s gloves proved to be low grade. Collections Enterprise had handled the payment for the deal.
Ziskin, who denies involvement in the alleged detention, had paid US$2.7 million for gloves to be delivered to his Los Angeles-based company, AirQueen. He filed a complaint with Thai police in March against Paddy the Room.
Ziskin and his associates left Thailand when police failed to provide evidence in time to apply to a court to hold them for further investigation, police commissioner Jirabhob said.