Victims file fraud complaints against iCon Group

As fraud complaints mount against The iCon Group, a well-known online business promoter, a lawyer has expressed confidence that some celebrities serving as its executives would be prosecuted for operating a pyramid scheme.
More than 20 people on Thursday filed complaints with Consumer Protection Police Division (CPPD) investigators. They were accompanied by Raphatsit Phattarasirichaisin, a lawyer and deputy chairman of a foundation campaigning to reclaim social justice.
One of the victims told reporters that she initially saw advertisements by The iCon Group on TV and social media, offering an online business course for 50-100 people, with tuition fees of only 98-99 baht each.
She was interested and applied. After she attended the course for three days, business coaches told the participants that they could help investors earn extra income but they had to pay membership fees of 2,500 baht each to get products. The coaches said the firm would provide marketing strategies to help them sell he products.
Celebrities often showed up at events promoting the firm’s business, said the woman. She met three celebrities and noted that they were called “bosses”, not product presenters. To attend each event, participants had to pay 1,500 baht.
The woman said she initially did not have enough cash to invest in the business. One coach suggested that she contact banks to extend lines of credit, so that she could obtain more money to invest and earn handsome profits. She then poured all of her savings and money borrowed on her credit cards into the firm.
She later found out that the money she invested was not for products to sell. Instead, she was asked to buy advertisements on social media to persuade people to apply to be dealers or customers. She would get fees for recruiting them.
Eventually, the woman grew suspicious, as she and others had not been taught how to sell products but instead had been persuaded to recruit others to invest.
By now, she said, she had run up huge debts and the products she got from the firm could not be sold.
Another victim said he considered committing suicide because he had invested more than 200,000 baht of borrowed money.
Mr Raphatsit said the 20 complainants were among about 500 affected people he knew to have invested with the firm.
He asked police to investigate whether the firm’s business operation was tantamount to committing public fraud or running a pyramid scheme.
Some victims had filed complaints with police earlier but there was no-follow-up, said the lawyer. Some others had sought help from people they thought could exert some influence in negotiating with iCon.
After the talks, the firm returned 50% of the money they had invested, but they had to sign documents that they would not file complaints with police, said the lawyer.
The Office of the Consumer Protection Board had concluded earlier that the firm’s business operation was not against the law, said Mr Raphatsit.
But there must be a more thorough investigation, said the lawyer. (Story continues below)
Also on Thursday, celebrity lawyer Decha Kittiwitthayanan took about 10 victims of the alleged pyramid scheme to file a complaint with consumer protection police against The iCon Group.
He said there was a high chance that some celebrities involved in the online business would be prosecuted. He declined to name them.
The online business in question focuses on health supplements and features well-known executives and celebrities such as Yuranunt “Sam” Pamornmontri, Kan Kantathavorn and Pechaya “Min” Wattanamontree.
Mr Yuranant, who was listed as the company’s chief research officer, has denied any involvement with the company’s operations.
Thankhun Jitt-itsara, who also accompanied the victims, said the firm gave inadequate information about its online business and exaggerated advertisements that lured people into investing with it.
To attract victims, the firm initially enticed people into investing 97 baht per head for its investment course. The investment amounts gradually increased to 250,000 baht per head for those who wanted to be dealers and form a sales team with a promise of more profits, said Mr Thankhun.
The firm later persuaded those who invested with it to purchase advertisements to find more members. On average, each person had at least 500,000 baht in losses, he said. So far, about 500 people have sought legal help from Mr Decha, said Mr Thankhun.
“We are urging these network dealers to file their lawsuits (against anyone involved with the alleged fraud) as soon as they can,” said Mr Decha.
The case has caused a stir on social media after news anchor Kanchai “Noom” Kamnerdploy hinted at a scandal surrounding a well-known direct sales company that has reportedly been using top Thai celebrities as presenters to build a network and sell people on dreams of investment opportunities.
Some people reportedly failed to receive what was promised or advertised. (Story continues below)
The iCon CEO Waratphon “Boss Paul” Waratvorakul, 41, has spoken to local media of his rags-to-riches journey in a life that has included stints as a waiter, a salaryman and an online tile seller.
The iCon Group reported revenue of almost 5 billion baht in 2021, according to Thansettakij. Many celebrities, actors, actresses and social media influencers served as presenters to sell products including Boom Collagen, iCon Face iSerum and other cosmetic products.
The company’s most recent financial statement last year showed it had total assets worth 2.4 billion baht, debts of 1.55 billion, total income of 1.89 billion baht, expenses of 1.86 billion, tax payment of 9.1 million, and a net profit of 19.77 million baht.
On Wednesday, Mr Warathaphon turned to his Facebook account to refute the allegations about his business, insisting that he has run it in a transparent manner for over six years.
He said he too is collecting evidence and is ready to speak with the police at any time.
He urged people to give him and his company the chance to prove their innocence through the justice process.