Thai Rath Online reported today (April 11) that the executives were charged with collaborating in fraudulent borrowings. The police are also hunting another Thai and three Malaysians believed to be the masterminds, according to assistant police chief Pol Lt Gen Suvira Songmetta, who led the raids on their homes this morning.
The police said they acted on several complaints by people who said they had lost a total of B10 billion.
Some 14,700 people in Thailand, Malaysia and Indonesia reportedly fell victim to the scheme. The Anti-Money Laundering Office also seized B250 million of the company’s assets.
Ufun sells cosmetics, food supplements and other products to members in a complicated business model that focuses on bringing in new members rather than selling the products, the police said.
Pol Sub Lt Rittidej Warong from Sisaket, 40, was arrested at his home in Khan Na Yao district in Bangkok this morning. A lawyer by profession, Rittidej holds 51 peer cent of the business.
Rattavich Thiti-arunwat, 34, was taken into custody at his house in Chiang Mai. Police also seized two luxury cars, a dozen brand-name bags and around 40 luxury watches at his house in Bangkok’s Bang Kapi district.
Mr Rattavich, a top team leader of the business, claimed his business was legitimate and was planning to expand abroad.
Chaithorn Thonglorlert, 40, was apprehended at his residence in Bang Na, Samut Prakan. Police also seized money transfer slips of hundreds of thousands of baht each and ringgit banknotes. He is a shareholder of the company.
Police chief Somyot Poompanmoung told a briefing at the company’s head office in Bang Na after the raids that several people had filed complaints against the company through government aid centres after they had not received their shares of promised profits since 2014.
“We looked into its business and found it was in fact a pyramid scheme. We revoked its corporate licence on April 8 and sought eight arrest warrants for its shareholders and directors, three of whom are Thai,” Pol Gen Somyot said.
Ufun made money by persuading people to invest with it through its website and other online channels.
It offers five investment positions: one-star ($500), two-star ($1,000), three-star ($5,000), four-star ($10,000) and five-star ($50,000). After becoming members, the customers will get points for discounts when buying products.
The members are also asked to persuade others to join their teams by buying Utoken, a virtual currency of its own used to buy the company’s products.
“We found the company did not mention products it registered to sell in its sales pitches. Instead, it urged clients to expand their teams by offering in return high-value items such as cars or gold bars.
“That way, the money it made mainly came from new members rather than from selling the products,” he said.
The other suspects on arrest warrants in this case are three Malaysians — Tae Kim Leng, 40, a shareholder and director; Lee Kuan Ming, 38, a director; and Wong Ching Hua, 42, a shareholder and director — and a Thai, Arthit Pankaew, 47, also a shareholder and director.
See original story here.
UPDATE: Jon Bailey, CEO of UFun/UToken posted the followinng statement last night (April 11) as a comment on The Phuket News Facebook page:
"As our company continues to expand globally, we are inevitably attracted attention from both potential customers and agencies of authority alike in each country.
"This is to inform you that yesterday our Thailand office was visited by the enforcement officers based on the report they received as part of their duties to protect the interests of the consumers.
"Therefore, you might read and hear from all corners, especially on social media regarding this matter.
"We wish to inform you that so far we have fulfilled all requirements in that country and we will do everything to cooperate with the authority and at the same time protecting the interest of our members and integrity of the company.
"As our esteemed members, you are advised to stay calm as our teams of lawyers are handling the matter and we will duly keep you posted. Our business continues as per normal and we continue to thrive with you, as this event will put us on the forth front of the future of this company."