The conclusion of a high-profile trial regarding the multi-billion baht Forex-3D Ponzi scheme has resulted in convictions for three individuals, while four others, including two well-known Thai celebrities, were acquitted. The case, which involved over 9,800 victims and billions of baht in losses, has drawn significant public attention and underscores the pervasive nature of sophisticated financial fraud. The complexities of proving individual involvement in such schemes, particularly the extent of knowledge and intent, are highlighted by the court’s decisions delivered on Thursday December 26th.
Case Summary
The legal proceedings centered around seven defendants who stood accused of colluding in fraudulent activities related to the Forex-3D investment scheme. The indictments included charges of obtaining loans through deceit, public fraud, and inputting false information into a computer system to advance the Ponzi operation. Allegedly, between November 2015 and September 2020, the defendants used social media platforms, specifically Facebook, to attract investors, promising lucrative returns in foreign exchange trading. A total of 9,824 investors were reportedly defrauded of an approximate sum of 2.49 billion baht.
Key Individuals and Relationships
The seven defendants included Daryl Cai Yonghui, a Singaporean national and husband of a well-known model, Pattanapon “DJ Man” Kunjara, a popular DJ, and Suteewan “Baitoey” Thaweesin, a renowned singer, and lastly Chatchai “Sue” Khotchathin, Theeraphassakorn “Mark” Kimwangtako, Suranart Nakmusik, and Ayuwat Chaimethanarakul. The celebrity status of DJ Man and Baitoey contributed to the case’s high profile, capturing widespread media coverage and public interest, while also bringing attention to the significant repercussions of such scams on individual investors. Notably, DJ Man and singer Baitoey had divorced earlier this year following the legal proceedings. Ms. Sutheewan was the only defendant to be granted bail under a 5 million baht bond and required to wear an electronic bracelet.
Court’s Verdict and Rationale
The court delivered a mixed verdict. While Chatchai, Theeraphassakorn, and Suranart were found guilty on charges involving fraudulent activities, Daryl Cai Yonghui was acquitted based on insufficient evidence to establish that he was a leading figure or actively involved in the defrauding of public via the investment scheme. The court stated that there wasn’t sufficient evidence to prove that Cai colluded with Apirak, who is considered the mastermind of the operation. The court further stated that he could not be proven as a leading member of the group. Mr Pattanapon and Ms Suteewan were also acquitted. The court decided that the existence of a photograph featuring them with Apirak in a meeting room was insufficient to suggest their direct involvement in business with him and was a matter or personal interest. The court also acquitted the seventh defendant, Ayuwat.
The convicted individuals were sentenced to 49,125 years imprisonment for each of the 9,825 offences, however, the application of the law regarding incarceration in such cases caps their total imprisonment to 20 years. They were also ordered to pay 2.47 billion baht in restitution to the 9,825 victims, plus interest at 7.5% per year, starting from April 11, 2021, emphasizing the scale and repercussions of fraudulent scheme and attempt to recover losses to victims.
Emotional Reactions to the Verdict
Following the verdict, there were displays of emotion from all parties. Ms. Suteewan and Mr. Pattanapon were observed hugging and expressing gratitude to the court, while Mr. Cai also showed emotion through tears and a traditional Thai gesture of respect. These reactions underscored the high personal stakes associated with the verdict. Additionally, the family members of some of the defendants showed emotions of both joy or sadness over the sentences.
Conclusion
The Forex-3D Ponzi scheme case serves as a potent reminder of the devastating impact of financial fraud on victims. The acquittal of high-profile figures alongside the conviction of others underscores the difficulty in prosecuting individuals involved in complex fraudulent schemes. The ruling is a sign of the complexity of legal prosecution in such cases and the importance of rigorous investigation to establish and prove the different level of involvement of each defendant in a larger criminal scheme. It also highlights how the justice system can balance the scales and deal with legal cases irrespective of personal fame or influence. The case also serves as a warning about the allure of high-return investment opportunities and the need for due diligence and vigilance when evaluating investment options, especially with social media channels. This case draws focus on the role of due diligence, accountability and justice on both prosecution and defence.
Frequently Asked Questions (FAQs)
What is a Ponzi scheme?
A Ponzi scheme is a fraudulent investment operation that pays returns to its investors from new capital paid by new investors, rather than from profit earned through legitimate business activities.
What is the Forex-3D scheme?
The Forex-3D scheme refers to a specific Ponzi scheme that falsely promoted high returns through purported foreign exchange trading.
How many people were affected by the Forex-3D scheme?
Approximately 9,824 individuals invested in the scheme.
What is the total estimated loss from the Forex-3D scheme?
The total estimated losses are around 2.49 billion baht
Were any of the individuals involved high-profile figures?
Yes, some individuals, namely a DJ and a singer, involved were high profile and this attracted wide media attention.
What were the outcomes of the court’s decision?
The court found three of the seven defendants guilty, sentencing them to a long prison time and ordering them to pay restitution. Four were acquitted.
Is the restitution guaranteed to be recovered?
The recovery of restitution will depend on the court processes for distributing recovered assets as well as the availability of identifiable assets of convicted people.
References
Bangkok Post