A request has been proposed to the Office of the Consumer Protection Board to be more careful before issuing a business license to operators of direct sales businesses following arrests of a Chinese national and three Thais recently, said Deputy Commerce Minister Apiradi Tantraporn.
Admitting that get-rich-quick scams are a national problem and could damage Thailand’s image and economy, Apiradi said her ministry, which oversees businesses in the country to ensure that they operate legally, would take stern action against illegal business owners.
Deputy Commerce Minister Apiradi Tantraporn.
She said the Business Development Department has been ordered to speed up investigations on the three Thais who acted as nominees for the Chinese national to establish a business in Thailand.
The Chinese man, identified as Zhang Jan, was arrested by police in the resort province of Phuket and charged with setting up a pyramid scheme under the business name of Yun Shu Mao, also known as YSLM, which he allegedly used to dupe people in China and Malaysia before coming to Thailand.
Zhang came to Thailand and set up the business in June. The Thais who worked for him asked for a revoke of the business license on October 28 with the Business Development Department and were apprehended before escaping.
If found guilty, Zhang would face a maximum three-year imprisonment or a fine of one million baht or both.
He could also face a criminal lawsuit, Apiradi added.