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Published on December 8, 2007

They found documents indicating that fraud had taken place.

The Department of Special Investigation also secured arrest warrants for three directors of Siam Foods Franchise: Sermsak Unnoi, Watcharaphorn Uthai and retired Colonel Choophong Pinthong. Choophong will meet investigators next week while the two other suspects are at large.

DSI spokesman Piyawat Kingket said asset seizure would be soon ordered against the company, which operated Bangkok Noodles Ua Arthorn for over a year with investment funds raised from more than 1,000 franchisees.

He said the office bore signs of hurried evacuation, with a large number of documents left behind. Some documents showed that there were only about 100 noodle carts registered with the company - a small number compared to the number of registered franchisees - indicating that the company's huge profits had possibly not been realised through sales of noodles.

The search was conducted with approval made available by a court order. The hour-long operation was led by Thanongsak Bunkhrob, a director of the company who has turned himself in and been released on bail, a spokesman said.

The agents participating in yesterday's raid were from various government agencies acting under a freshly signed joint agreement between agencies responsible for consumer protection and prevention of public fraud.

Piyawat said the DSI was making good progress in its investigation of another pyramid-scheme business, operated by Easy Network Marketing and involving the pawning and advance purchase of rice seeds. The company's director and Thai Ram Ruay Party leader Pathom Anyasakul is now in custody.

Piyawat said documents seized from Easy Network Marketing showed it had raised more than Bt2 billion from investors all over the country, especially in the South. The company's remaining assets and cash flow had fallen to Bt200 million.

A DSI source said seized documents indicated a connection between Easy Network Marketing and a temple in Pathum Thani with known connections to "the old power clique". A separate DSI probe is looking into this specific lead to determine whether Easy Network Marketing was allowed to operate with the knowledge of those in the former government.

Meanwhile, Chiang Mai police arrested a woman who allegedly operated a pyramid scheme known as "Chiang Mai Barter Club". Police said Sirirat Saenkaew had promised to pay Bt32,000 in returns within four months to investors who joined up by paying Bt700.

Chiang Mai Barter Club has 45 investors and police took action after one of them recently filed a complaint with Chang Phuek police.

The Nation