International drug ring smashed on Ko Phangan as police uncover ฿71M money laundering scheme linked to music festivals. A Russian dealer used a fake cleaning business as a front. French and Italian nationals were also arrested for supplying illicit narcotics to tourists.
An ongoing police investigation led by the Immigration Bureau in Ko Phangan has seen an international drug ring smashed. On Friday, Thai police revealed that a Russian drug dealer operated a contract cleaning business on the island as a front for laundering the proceeds of illicit narcotics sales. In addition, two foreign men—a Frenchman and an Italian—were also arrested. The Italian had received ฿71 million in payments for narcotics during the course of the investigation. In short, police believe the ring was engaged in supplying illicit narcotics to foreign tourists on the island, especially at music and entertainment events.
The probe commenced in March 2024 when a British expatriate was arrested on visa overstay charges. He was subsequently jailed for possession of cocaine.
On Thursday 19th, the Immigration Bureau revealed details of an extensive police operation which smashed the Ko Phangan-based drug empire. Police uncovered an Italian drug dealer on the island who received over ฿71 million in payments over a year-long period.
The arrest of Mr. Frederico came on December 11th. At the same time, police across the island raided three different locations. These were executed under court-approved search warrants.
Police raids reveal Italian dealer laundering ฿71 million through Ko Phangan’s illicit drug empire
On Friday, Police Major General Panthana Nuchanart gave details on the drug distribution and money laundering network case.
In short, the investigation began on March 1st, 2024. On that date, Surat Thani Immigration Bureau officers arrested a British national who overstayed his visa. Ko Phangan is an idyllic holiday island famous for its popular Full Moon parties.
Nonetheless, over the last few decades, the island has additionally become famous for the sale of illicit drugs. Indeed, the regular music festivals and culture among the party community on the island have become synonymous with illegal drugs.
The network investigated by police in this operation supplied illicit drugs to both Ko Phangan and Ko Samui.
The arrests in December have provided police with valuable intelligence and information on what appears to be significant drug operations.
Ko Phangan’s drug trade thrives through music festivals and links to illicit distribution networks
The UK man arrested in March 2024 was subsequently charged with possession of and trafficking ecstasy and cocaine. In brief, these are illegal category 1 and 2 drugs in Thailand. The Briton was fully prosecuted by authorities. After that, Ko Samui Provincial Court sentenced him to 5 years and 11 months in prison.
Subsequently, police investigated the UK man’s affairs. Eventually, they noticed payments of ฿200,000 to an Italian national also residing on the island. This was Mr. Federico.
On Friday, Police Major General Panthana laid emphasis on the fact that all players in this case appeared unemployed. Indeed, all had lived on Ko Phangan for a number of years. However, none appeared to have legitimate sources of income, nor did they work. However, they did have private companies, which appear to have been fronts to launder and secure illicit gains.
Meanwhile, after arresting Mr. Federico on December 11th, police seized valuable evidence. The expat had a bank account with Bangkok Bank, which contained ฿6.6 million in funds. Furthermore, police found land documents for 2 rai of land valued at ฿8 million.
Police uncover laundering schemes tied to illicit drug sales during investigations into foreign suspects
Significantly, the land was held by a Thai-registered holding company. Police identified this as the Pittaya Land Company on Friday. Officers also seized a Mazda car as part of their investigation.
On Friday, the senior officer explained that Mr. Federico and his associates were engaged in illicit drug distribution on Ko Phangan, particularly the sale of narcotics to visiting tourists at music festivals such as the notorious Full Moon on the island.
Furthermore, an examination of Mr. Federico’s affairs led police to examine a 37-year-old French national identified as Mr. Roman. After that, police also scrutinized a 39-year-old Russian national identified as Mr. Anton.
Indeed, both were arrested by police, with Mr. Roman found with cocaine, while the Russian, Mr. Anton, was found with magic mushrooms.
Significantly, Mr. Anton was found to be in control of a contract cleaning company. Pure House Phangan Company Limited held itself out as a villa cleaning service on the island.
Foreign nationals used fake businesses to launder funds while supplying drugs to Ko Phangan’s festival goers
In the meantime, police have confirmed that the company was using a Thai nominee shareholder arrangement. Certainly, foreign residents are not allowed to operate as contract cleaners in Thailand. In turn, this led Thai police to arrest a Thai woman identified as Ms. Meena.
She is to be charged with helping foreigners circumvent the Foreign Business Act of 1999.
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Italian living with Thai wife on Koh Phangan arrested for dealing after drugs found in the post
Meanwhile, police are conducting a forensic examination of the three latest foreigners arrested as part of this investigation. Certainly, it is thought that there may be further arrests. In addition, there are a number of additional properties which police are looking into.
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Further reading:
Magic loses its touch: ‘invisible’ drug dealing Nigerian nabbed by cops in Ko Phangan Hotel swoop
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