Two police units to probe The iCon Group
Earnings of more than 5 billion baht prompt suspicions that the direct sales company is scamming those who sign up to resell its products
The Royal Thai Police’s Central Investigation Bureau (CIB) and Cyber Crime Investigation Bureau (CCIB) have been tasked with investigating the businesses of The iCon Group, a direct sales company suspected of scamming the public using celebrities.
CIB deputy chief Pol Maj Gen Atthasit Sudsanguan said on Wednesday that the acting national police chief Pol General Kitrat Phanphet has ordered the CIB and CCIB to form an investigation task force to probe the company’s business operations and finances.
The national police chief also appointed his assistant Pol Lt Gen Akkharadet Phimolsri to supervise the joint operation, said Atthasit.
Atthasit did not disclose what kind of malpractice the company is suspected of doing, but he promised that the investigation would cover all related parties, including the company’s directors, stakeholders and celebrities involved.
He said the investigators will prioritise offences under the consumer protection act and public fraud, adding that this will be a huge, high-profile case.
Meanwhile, Akkharadet on Wednesday ordered the Consumer Protection Police Division (CPPD) to set up a centre to accept complaints from victims who have been damaged by The iCon Group’s business.
Founded by Warathaphon “Paul” Waratyaworrakul, the iCon Group has surprised business observers by earning more than 5 billion baht this year, even though it was only set up five years ago.
It shot into the national spotlight for using celebrities and influencers to persuade the public to buy the company’s beauty and healthcare products for resale, promising huge profits.
Complaints regarding the company’s dubious business operation started to surface earlier this week, when some of the resellers turned to social media influencers for help after they reportedly took loans or sold their assets to make the sales quota set by the company. Some of them even faced bankruptcy and asset confiscation.
Facing such heavy public criticism, Warathaphon responded on social media on Wednesday that his business is completely legal.
“Please give a chance for me and my company to prove our innocence through the justice system before judging us,” he said.
The iCon Group was created on June 1, 2018, with a registered capital of 50 million baht. Its registered address is in Bangkok’s Bang Khen district and its objective is to carry out retail sales via the Internet.
As of April 30 this year, Warathaphon holds a 74.9998% stake in the company, with the rest held by Jinda Saekok (21%) and Panjarat Kanokrathanaporn (4.002%).
The iCon Group reported to the Business Development Department last year that its assets are worth 2.4 billion baht and liabilities worth 1.554 billion baht. Its revenue was registered at 1.89 billion baht and expenses at 1.86 billion baht. It has paid 9.11 million baht in taxes for a profit of 19.78 million baht.
