THAILAND: In a striking conclusion to a high-profile luxury goods fraud case, Pansuk Siriwipa, a 30-year-old Thai woman, was sentenced to 14 years in prison on Oct 29 for orchestrating a scam that defrauded almost 200 victims out of over $25 million.
Joining the proceedings via video link, Pansuk bowed her head and nodded as the judge delivered the verdict.
On Oct 21, according to The Straits Times, she pleaded guilty to 30 charges, including cheating, fraudulent trading, and money laundering, out of 180 charges, with 150 considered during sentencing.
Guilty as charged
Pansuk, alongside her 29-year-old Singaporean husband, Pi Jiapeng, gained notoriety in 2022 for their involvement in a $32 million luxury goods fraud.
From May to August of that year, 187 police reports were filed against their companies, Tradenation and Tradeluxury, for failing to deliver goods despite full payment from customers.
District Judge Christopher Goh described the sentence as “appropriate” and “not crushing,” reflecting the severity of Pansuk’s actions.
He emphasized the staggering financial implications of the scheme, which involved nearly $26 million.
Lavish lifestyle from Ponzi scheme
Notably, despite the companies operating at a loss, Pansuk and Pi amassed significant personal expenditures funded by customer payments.
This included purchasing a $2.3 million house in Bangkok under her mother’s name and enjoying a $58,000 private jet flight. Pansuk’s lavish lifestyle extended to luxury vehicles, including a Chevrolet Corvette, which was traced back to customer funds.
Initially, the couple successfully sourced luxury goods at competitive prices.
However, by late 2021, difficulties in acquiring products led to operational losses, with cumulative liabilities reaching over $9.3 million by March 2022.
Yet, Pansuk continued to accept new orders, effectively turning the businesses into a Ponzi scheme.
In one incident, a customer entrusted Tradenation with a Rolex valued at $105,000 for sale, but Pansuk sold it for only $72,000, using part of the proceeds to cover her husband’s credit card bills.
Deputy Public Prosecutor David Koh sought a sentence between 14 and 15 years, highlighting that Pansuk maintained a salary of $10,000 while paying Pi between $40,000 and $52,000 monthly despite the companies’ dire financial state.
Pansuk’s legal team argued for a lighter sentence, suggesting a range of 12 years and eight months to 13 years and seven months, citing her remorse and desire to care for her elderly grandmother.
In a dramatic turn of events during the investigation, Pansuk and Pi attempted to flee Singapore in July 2022, hiding in a lorry’s container.
Two Malaysians who aided their escape were sentenced to one year in jail in September 2022.
As the case concludes, the repercussions of the scam linger for the victims who were deceived in pursuing luxury goods.
Featured image by Depositphotos (for illustration purposes only)