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By Panarat Thepgumpanat and Chayut Setboonsarng
BANGKOK (Reuters) – Thai police have arrested 18 folks and seized luxurious items after receiving almost 5,600 complaints about an alleged pyramid scheme, saying on Monday they estimate buyers have misplaced at the very least 1.61 billion baht ($48 million).
The Central Investigation Bureau (CIB) mentioned it had seized belongings price 225 million baht, together with 29 automobiles, three homes and luxurious watches, from the alleged perpetrators, who’ve been charged with defrauding the general public and violating the pc crimes act.
Police mentioned the case concerned the iCon Group, which recruited folks to promote magnificence merchandise and well being dietary supplements, offering them coaching with the promise of fast earnings.
The agency makes use of celeb endorsements, and its social media has showcased their high distributors on European holidays.
To date 18 folks, together with three celebrities, have been arrested and denied bail, in keeping with police, who mentioned the investigation was ongoing.
All 18 arrested, together with iCon Group founder Waratpol Waratworakul, deny the costs, lawyer Withoon Kengngan informed Reuters. Withoon is representing Waratpol, and his regulation agency is representing the corporate.
“We’re preventing the case as a result of this can be a actual enterprise, promoting merchandise on-line via direct advertising and marketing,” he mentioned, including that there was no fraud.
Multi-level advertising and marketing, direct promoting and advertising and marketing is authorized in Thailand, with many firms efficiently utilizing the mannequin to promote merchandise.
Thailand has a historical past of fraudulent get-rich-quick schemes and different frauds corresponding to name centre and phoney funding scams. There have been over 500,000 circumstances of economic fraud between March 2022 and Could 2024, in keeping with police knowledge, with losses totalling 63 billion baht.
($1 = 33.3600 baht)
(Reporting by Panarat Thepgumpanat and Chayut Setboonsarng, Modifying by John Mair)
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