The DSI Has Now Charged the Company, Its Israeli Director and a Thai Shareholder in the Pattaya Nominee Case, Under the Foreign Business Act

The Pattaya Nominee File Moves From Summons to Formal Charge #

What Did the DSI Charge on 7 October 2026? #

• Who Was Charged, and With What?
• What Do Sections 36, 37 and 41 Punish?
• What Does This Mean for Existing Owners and Prospective Buyers?
• The Better-than-Freehold™ Solution
• FAQ Section
• Related Terms
• Expert Guidance

Who Was Charged, and With What? #

Cozy Beach View is accused, Nation Thailand reports, of operating a business as a foreign entity without the required authorisation.¹ Its Israeli director is alleged to have knowingly consented to that, or failed to take reasonable measures to prevent it. The Thai shareholder is accused of unlawfully assisting, supporting or jointly conducting a foreigner's business.

Thai Examiner names the director as Maimon David Marciano and says the accusations cite sections 36, 37 and 41 of the Act.² Earlier reports, including our September report on the summonses, spelled his name Marsiano. Both declined to give statements, the outlet adds. Investigators believe the Thai shareholders made no genuine investment and are examining whether property was held in Thai names for the benefit of foreign investors.² In September, Thai Examiner put the director's stake at 49% against two Thai holders at 25.5% each.³

The charges came a day before separate DSI searches in Bangkok; Thai Examiner says investigators are checking for connections and have established none.²

What Do Sections 36, 37 and 41 Punish? #

Section 36 punishes a Thai who acts as a foreigner's nominee or assists a restricted foreign business, and the foreigner who allows it. Section 37 is the separate offence of a foreigner operating a restricted business without a licence. Section 41 reaches directors who connive at a company's offence under either section, or fail to take reasonable action to prevent it.

Section 36 carries up to three years and/or a fine of THB 100,000 to 1,000,000, plus court-ordered cessation of the shareholding and daily fines of THB 10,000 to 50,000 for defying that order. If a nominee holding were proven, the Land Department could also force a sale of the land. Neither outcome is dissolution of the company.

The Act is administered by the Ministry of Commerce through its Department of Business Development.

What Does This Mean for Existing Owners and Prospective Buyers? #

Three parties were charged, and only one is the company. For an owner of a high-risk property-owning company, the exposure might reach a Thai shareholder the owner knows well and, through section 41, the owner personally where they sit as director.

Divestment typically takes eight to sixteen weeks, expected to reduce to under four weeks as Better-than-Freehold™ grows.

Someone still deciding how to acquire can sidestep nominee company risks at the outset, with a structure that never asks a Thai shareholder to stand in for them.

The Better-than-Freehold™ Solution #

Compliance comes first. Thailand Investor Network, a 100% Thai-owned property holding and management company, holds legal title directly, so no Thai shareholder holds shares on a foreign investor's behalf.

Security follows. SPH Trustees Ltd, a Labuan FSA-regulated trust company, holds the client's rights through a bare trust: a registered 30-year lease and first-priority mortgage, the year-30 Option Agreement appended to the mortgage, and a share pledge. Clear Blue Security Agents (CBSA) mediate and enforce, with the courts a last resort.

The benefits are financing to 50% LTV (expected H1 2027), resale by assignment of trust interest, and succession without Thai probate.

FAQ Section #

Related Terms #

• Nominee Company Risks in Thailand - the wider pattern
• Foreign Business Act Thailand - section 36 explained
• The DSI's September Summons Report - this case's summons stage
• Gatekeeper Liability in Thailand - professional exposure

Expert Guidance #

Immediate Action Required #

If your company's shareholding looks like this one, contact the Better-than-Freehold™ advisory team for a confidential assessment.

Long-term Security Strategy #

This file went from searches to charges in under seven weeks. A planned divestment beats one started after a charge sheet arrives.

Conclusion #

Nothing here is proven, and Thai Examiner reports both individuals will contest the accusations in court.²

References #

This article is provided for general information only and does not constitute legal, tax, or investment advice. Laws and enforcement practices change; obtain advice tailored to your situation before acting.