Thai police break up network that illegally helped foreigners, mostly Russians, stay in country, arresting dozens

Thai police have broken up a large network that illegally helped foreigners, mostly Russians, to stay in Thailand long-term through the use of company nominees or shell companies, officials said Friday.

Police said a 45-year-old Russian woman who came to Thailand in 2012 operated the scheme with a Thai woman who was listed as an executive or a shareholder of more than 270 companies in the southern province of Phuket.

Foreigners can operate a business in Thailand, but it must be a joint venture with a Thai partner except in specified cases, and they cannot own more than 49 per cent to protect local competitiveness.

The defendants offered a service in which foreigners could be listed as a shareholder of a business with a Thai partner or be employed by a shell company owned by Thais to get a work permit, said Puttidej Bunkrapue, commander of the police Economic Crime Suppression Division.

A total of 98 foreigners, including 68 Russians, have been accused of operating businesses without a permit, which carries a maximum sentence of three years in prison and a million baht (US$27,000) fine, police said. In addition, 37 Thais were accused of offences related to the network.