SATUN: Two sisters have been arrested on charges of swindling about 100 people out of at least 10 million baht in total through fraudulent online gold investments.
Crime Suppression Division police apprehended Ratchanok Khaophut, 32, and her younger sister Ratchanee, 27, for public fraud at their house in Satun on Thursday. The team was led by Pol Col Sompong Suwannawong, superintendent of CSD sub-division 6.
The pair were accused of running a pyramid-like scheme in which victims were invited to buy gold, and then cheated. They denied the charges.
The sisters tearfully told police they did not run the scheme, and were merely members tasked with inviting other people to join.
They claimed they were also duped, having themselves lost a large sum of money to the fraudsters. They had already filed a complaint with local police at Bung Kum in Bangkok.
CSD police said the online scam was similar to a pyramid scheme. It offered high returns to attract clients. During the initial phase, investors would receive the promised returns, paid on time. After they invested more money, the scammers fled with it.
Ms Ratchanok and Ms Ratchanee told police the investment scheme launched about 7 months ago. People who joined had to buy at least two-baht weight of gold initially.
In each investment round there would be 100-200 baht weight of gold available for investors to buy. The actual retail price of the gold bars was about 20,000 baht per baht-weight, but members would buy it for only 17,000 baht, earning a profit of 3,000 baht.
In the first round, buyers got gold. Then they invested more money, but the operators fled with the funds and could not be contacted.
The two sisters said they had been swindled out of 3 million baht and another victim lost as much as 8 million baht. There were around 100 victims around the country to their knowledge.
CSD police said investors appeared to have lost at least 10 million baht. They expected the scammers would strike again, with a similar scheme to lure new victims.