Kaliugo Ergcnii, 37, and on holiday from Russia, went swimming and left his belongings on the sun lounger. Mr Muhammad seized the opportunity and stole the wallet, but Mr Ergcnii spotted him doing so and gave chase.
Once caught, Mr Muhammad did not put up a fight and returned the wallet, then waited while police were called.
Police then escorted Mr Muhammad to his room at the Blue Ocean Resort in Patong, where police found many other stolen items.
He was taken to Kathu Police Station and charged with theft.