The boss of a prominent Phuket developer has been arrested.
Sawit Katroe, the Managing Director of Emerald Development Group, has seen complaints filed against his company for alleged public fraud.
The suspect, according to an article in the Bangkok Post, claims that Emerald Group allegedly has no intention of completing its property projects.
More than THB 300 million is alleged to be involved as well as some 300 buyers and investors, many from overseas.
The apparent development may come as a surprise to many, the with Emerald Group brand prominent on the southern Thailand island.
Ironically one of Emerald Group’s projects, The Emerald Terrace Condo @ Patong, was the winner of the Best Condo (Phuket) award at the 2015 Thailand Property Awards, widely regarded as the ‘Oscards’ of Thailand’s property and real estate industry.
ThailandProperty.News was recently the recipient of email marketing for an Emerald development (pictured).
Alarm bells rang for us because the offer from Emerald Group, marketed by real estate firm Century21 Skylux, was offering 7 percent net returns for five years, plus a guaranteed 110 percent buyback in year five of the investment.
Further due diligence investigations revealed the guarantees were being offered by a newly formed subsidiary company with no track record and little in the way of assets.
Emerald Group was unwilling to offer the guarantees itself.
The company sold its projects mostly to foreign buyers and investors.
The Royal Thai Police is urging affected buyers to take part in a lawsuit against the developer.
Are you affected by this story? Do you want to share your experiences? Please leave your comment.