The Bangkok Post has reported that fitness company California WOW Plc allegedly cheated its customers and shareholders by reporting losses while simultaneously transferring 1.7 billion baht out of the country over 10 years.
The Anti-Money Laundering Office (AMLO) believe as many as 10 people could have been involved in siphoning money out of the business.
Chaninat and Leeds specializes in international fraud and financial cases in Thailand
The fitness company is now going through bankruptcy reorganisation and the company is currently suspended from trading on the Stock Exchange of Thailand. Since 2006, the company reported a profit only in one year.
California WOW was set up by Canadian entrepreneur Eric Levine and Waraluck Vanichkul.
Thailand fraud law defines certain financial offenses as criminal offenses. Financial offenses include: fraud, misappropriation of funds and receiving stolen property. Financial offenses may also be defined in various regulations and Acts, such as the Anti-Money laundering Act.
However, in addition, financial offenses may also be civil cases pursuant to tort law (wrongful act), contract law, bankruptcy law, tax law or administrative law.
To clarify there is actually no specific offense of tax evasion under the Thai Penal Code. However, Chapter 3 of the Code deals with offenses relating to fraud and cheating which includes tax evasion – the victim is simply the tax department.
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