An Israeli has been caught illegally running a motorcycle rental business on Koh Phangan that earned him about 3 million baht last year, police said.

The job is an occupation reserved for Thais, police said.

A Thai woman identified as "Allie" admitted to letting the man use her bank account when doing business.

Pavel Fadeev, 38, was arrested at a house in tambon Koh Phangan. 

Police also impounded 15 motorbikes, 15 crash helmets, 109 spare keys, 51 registration books and 386 rental contracts. 

An inspection revealed the business made about 3 million baht profit last year.

There were 90 motorbikes on the books for rent, with 75 rented out.

Mr Fadeev admitted to owning the business. He told police he was managing director of Waves Company Ltd, which was headquartered in Phuket.

He said he had a work permit as a general manager and moved to Koh Phangan to run the rental business. His customers would contact him via the website www.shlevich.com. The website was "not available" when checked by the Bangkok Post on Tuesday.

He also told police he bought the motorbikes cheap on Facebook from Israelis and Thais.