Criminals running Ponzi schemes like "Share Mae Manee" or the recent "Forex 3-D" under the guise of a company are nothing new in this country.
One of the earliest cases that one can remember is the notorious "Share Mae Chamoy" scam run by the infamous Chamoy Thipyaso in the mid-1980s. Her so-called chit fund, which she claimed was based on oil shares, ran for several years. In the end, she managed to cheat 16,231 court-confirmed victims out of almost 5 billion baht.
What is surprising, is that 40 years later, Thai investors are still falling for get-rich-quick schemes such as these.
Since the Share Mae Shamoy case ended, there have been 2,500 Ponzi schemes recorded by the government, with about 38,000 victims and a total financial loss of 390 billion baht, according to information revealed by Pheu Thai MP Chaturong Pengnoraphat during a House session yesterday.
Despite red flags and plenty of cautionary tales, Ponzi schemes still thrive, becoming more advanced and complex. Online platforms and social media sites are used to enable fast transactions and attract investors.
Fraudsters come up with new financial products involving cryptocurrencies, non-fungible tokens and exotic commodities, including cows via mobile apps.
Celebrities and even socialites have jumped into the industry to become influencers -- or in the case of Forex 3-D, founders and traders. Actress Sawika "Pinky" Chaidet and her family members have been charged over their alleged involvement in the scheme.
The question now is: What must the government do to deal with Ponzi schemes? It must be stressed that the current government has been at war with Ponzi schemes since 2017.
Over the past few years, all related laws, including those regulating computer crimes and money laundering, have been updated to enable law enforcement agents to keep track of fraudsters, follow money trails and quickly freeze assets. Yet, the schemes are thriving, proving that the government's solution is not enough and it is merely plastering over the cracks.
In reality, most Ponzi scheme victims need to wait years for a court to get their money back -- if they can get their money back at all. The Share Mae Chamoy, victims have only recovered 1–2% of their investments.
Chamoy, a former Petroleum Authority of Thailand employee who was sentenced to 150,000 years in prison for the crime, walked free after serving just over seven years.
The government must work harder to prevent Ponzi schemes from thriving, instead of waiting to arrest suspects. One action the government rarely takes is providing financial literacy to people so they are less likely to be hoodwinked by dubious schemes.
The main focus of financial education is on promoting investment, like how to pick stocks and shares. Courses like that are good but they do not prepare sound investors, especially among the younger generation, who must be able to truly identify real investments.
Without good financial literacy, more people will be lured into Ponzi schemes.
