Efficiency Enhancement of Law Enforcement to Prevent and Resolve a Ponzi Scheme Problem in the Transnational Venture Capital
Abstract
The objectives of this research are to study the problems and impact of a fraudulent transnational venture capital firm using Ponzi schemes to defraud investors in Thailand and to study the problems, obstacles, and limitations of law enforcement as well as offer recommendations to empower law enforcement agencies to deal with the problem more effectively. This qualitative study employs documentary research, non-participant observation, in-depth interviews, and a focus group. The results show that a Ponzi scheme was organized by criminals that used social media and a fraudulent transnational venture capital investment company as deception tools. In this case, the Royal Thai Police arrested 32 suspects. There were 50,000 victims, and cash flow in the company bank account was about 10,000 million Baht. The problems, obstacles, and limitations law enforcement faced were divided into the following five categories: offenders, victims, legislation, law enforcement, and informal finance. The following seven recommendations were proposed to empower law enforcement authorities to become more efficient: establishing a Ponzi scheme prevention and suppression agency, establishing a fund to prevent Ponzi schemes, informing the public about Ponzi schemes, applying foreign laws to domestic laws, increasing domestic funding, implementing rotating community savings, and establishing a special jurisdiction for economic crime cases.
Keywords: Efficiency Enhancement, Law Enforcement, Ponzi Schemes, Transnational Organized Crime, Venture Capital, Fraudulent
DOI: 10.14456/rjsh.2020.2
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