Thai police have announced the arrest of the head of a company suspected of deceiving foreign buyers of millions of dollars paid for undelivered rubber medical gloves during the coronavirus pandemic
Authorities in Thailand have cracked down on an upsurge in rubber glove fraud, including the sale of substandard and used gloves.
Police Lt. Gen. Jirabhob Bhuridej said Florida-based company Rock Fintek filed a complaint that Thailand’s Sufficiency Economy City Co. failed to deliver 2 million boxes of nitrile gloves from a value of $ 15.5 million for which she had made a deposit of 40%.
The CEO of the Thai company, Kampee Kampeerayannon, was arrested on Tuesday for fraud and posting false information online, he said. Kampee could not be contacted on Wednesday and his company declined to comment.
In another case on Tuesday, the Thai attorney general’s office announced that a Thai employee of Paddy the Room Trading Co., Pipatpon Homjanya, had been sentenced to four years in prison.
The company had exported millions of substandard and in some cases second-hand gloves to the United States, which were packaged without permission in boxes from a legitimate glove producer, Thai officials said.
Pipatpon was found guilty of producing and marketing substandard medical gloves and medical equipment and of using the brand name of other companies without permission, Thai media reported.
Paddy the Room chief executive Luk-fei Yang Yang, identified by police and company records as Chinese, left Thailand before prosecutors could formally indict him in court.
The Paddy the Room transactions gained public attention in May when a U.S. businessman who had filed a complaint about being cheated by the company was himself arrested.
Louis Ziskin and several associates were arrested for allegedly detaining a Taiwanese representative of another company, Collections Enterprise, to unsuccessfully pressure her to reimburse money after Paddy the Room gloves turned out bad quality. Collections Enterprise had processed payment for the transaction.
Ziskin, who denies any involvement in the alleged detention, had paid $ 2.7 million for gloves to be delivered to his Los Angeles-based company AirQueen. He filed a complaint with Thai police in March against Paddy the Room.
Ziskin and his associates left Thailand when police failed to provide evidence in time to ask a court to detain them for further investigation, Police Commissioner Jirabhob said.
Associated Press video reporter Tassanee Vejpongsa contributed to this report.