Laws set to tighten to fight pyramid schemes

The government is expediting the drafting of amendments to close loopholes in several related laws in a bid to further combat pyramid-like schemes, Deputy Finance Minister Julapun Amornvivat said on Monday.
Mr Julapun said Prime Minister Paetongtarn Shinawatra had assigned several agencies, including the Justice Ministry and Finance Ministry, to review necessary laws and address legal loopholes.
Mr Julapun was commenting in response to senators’ concerns about extensive damage caused by The iCon Group’s direct sales business scandal.
The scandal involves multiple laws such as the 2002 direct sales and direct marketing law, the 1984 fraudulent loan law, the 1979 consumer protection law, the 2017 computer crime law, the 1999 anti-money laundering law and the Criminal Code.
Mr Julapun said the proposed amendments, once finalised, would be examined by the Council of State and then submitted to the cabinet for approval.
He added that the process is likely to take no more than three months at most, as the government treats it as urgent. “The aim is for authorities to prosecute team leaders at every level of a pyramid scheme, and penalties are proportionate to the damage caused,” he said.
The deputy finance minister also said that possible changes to bankruptcy filings and extending the statute of limitations in related cases are being considered to keep up with evolving methods of fraud and pyramid schemes.
“Scams have evolved, and there are several forms of them. We must close any loopholes. We’re hoping these planned amendments will more effectively prevent various types of fraud,” he said.
Meanwhile, assistant national police chief Pol Lt Gen Akkaradej Pimolsri said no additional charges were filed against the 18 suspects in The iCon Group on Monday.
Police are still investigating their financial trails, and arrest warrants for a second group of potential suspects have not been yet sought as evidence is still being gathered, he said.
Earlier, police charged the 18 suspects, including Warathaphon “Boss Paul” Waratyaworrakul and three celebrities, with public fraud and allegedly entering false information into computer systems.
They face additional charges of money laundering, fraudulent borrowing and illegal assembly, according to police sources.
Pol Maj Gen Jaroonkiat Pankaew, deputy commissioner of the Central Investigation Bureau (CIB), said police are still working on several audio clips found on Mr Warathaphon’s phone.
Mr Warathaphon had saved numerous recordings on his phone of conversations with people, including politicians and activists, who were allegedly extorting him.