Man arrested over ties to 'savings club'

Man arrested over ties to 'savings club'

Extent of damage by scam still not known

This partially refurbished house was raided by authorities as part of a probe into an investment scam in Sukhothai. (Photo by Sukhothai Post)
This partially refurbished house was raided by authorities as part of a probe into an investment scam in Sukhothai. (Photo by Sukhothai Post)

The Department of Special Investigation has busted a gang in Sukhothai which duped more than 10,000 people into a scam which promised returns of more than 500,000 baht for every 100 baht of investment.

Led by its Illegal Financial Business Crimes Bureau director, Piyasiri Wattanavarangkul, the department raided a house owned by Charanin Muenchit, also known as Theerathat Thornkanok, whom authorities have linked to a scam run by the "Chor Lek Sukhothai Savings Club".

Scammers associated with the club would approach victims through Facebook and the Line chat application, claiming the club has a credit line from a commercial bank worth some 200 billion baht, which it had invested in Mozambique's artificial intelligence sector and various digital currencies.

They used a photo-shopped bank savings account book to make the entire operation appear legitimate, the department said.

"For every 100 baht invested, the victims were promised a return of 10,000 baht a month, over five years," Mr Piyasiri said, adding more than 10,000 people fell victim to the scheme.

Those found to be linked to the scam will be prosecuted under the Computer Crime Act and face charges of public fraud.

The raid on Mr Charanin's house, which was advertised as an investment office, found one computer and several memory cards and documents which weren't related to the large-scale fraud.

Mr Piyasiri said authorities are still reviewing the extent of the financial damage, although authorities know that most of the victims -- each of whom had invested between 100-2,000 baht with the club -- live in the Lower North.

In Sukhothai alone, he said, at least 800 people have come forward to seek help.

The DSI has not yet accepted the case for further investigation, but it is working with authorities to stop the gang from claiming more victims and causing more financial damage through the scheme, according to the director.

The DSI will ask the Commerce Ministry to check if the company that listed Mr Charanin's home as its registered address really exists and if so, to revoke its licence, he said.

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