DSI seizes Railway Club co-op building
A 24.3-million-baht apartment building in Chiang Mai belonging to a former executive of the Railway Club Cooperative has been seized as authorities expand an investigation into money-laundering linked with last year's 2.8-billion-baht embezzlement in the cooperative.
The three-storey building, in tambon Nong Han of San Sai district, is owned by Prachuap Nakham who was among several former cooperative executives allegedly involved in the embezzlement scandal, said a source yesterday.
He allegedly used money obtained unlawfully from the cooperative to invest in the rental apartment business, which includes the plot of land that houses the building. The building was seized by the Department of Special Investigation which is probing acts of money laundering connected with the embezzlement, the source said.
Last November, the former chief executive of the cooperative and eight committee members were arrested for allegedly colluding in the embezzlement of 2.8 billion baht from their members' fund. Police also confiscated 10 million baht in cash along with luxury cars, watches and other assets from those suspects, Central Investigation Bureau (CIB) chief, Pol Lt Gen Torsak Sukvimol, said.
The police probe into the case began last June after police received complaints alleging a violation of the law in the approval of certifications approved by these suspects. The committee allegedly approved 199 loan applications, some of which had been filed by their affiliates.
Many loan requests were approved without calling for a meeting and each suspect received about 15 million baht per application, according to the CIB. Total damages amounted to more than 2.8 billion baht from 2,300 members, plus investments from other state enterprise cooperatives.