Pattaya Victims Accusing Local Foreigner of Massive Fraud Get Help from Pattaya Police Chief

The 64-year-old Australian Lance Frederick Shaw is allegedly involved in a dubious gold investment scheme. He has lived and allegedly bought property in Pattaya and allegedly received much of the money into a Thai bank account. Mr. Shaw is being held in Nong Palai prison on Highway 36 opposite the Regents School outside of Pattaya awaiting trial after his recent arrest while re-entering the Kingdom.

“Allegations of being cheated for a total of about forty million baht have been documented by Rick Jones, Phillip Shields, Alan and Michael Burnside, Namjam Piote, Robert Taylor, Robert van der Moigg, Niel Armstrong, Stanley Walter Long and many others who have come forward so far,” said local school teacher Graham Mitchell, also a victim.

The case was documented in a two-page article in the Bangkok Post Sunday Spectrum August 16, 2009 article called "Gold Fever" and again in the Bangkok Post on September 20 entitled “Australian man arrested over gold scam". Very little press has appeared in Pattaya, until now. One tabloid in particular which mostly focuses on crime stories has been noticeably quiet about the story.

Under the direction of Police Superintendent Colonel Sarayuth Sanguanpokai on October 5 Pattaya Police reviewed police reports filed by several victims of the scam over the last two years who came to the station that day with representatives of PAPPA Co., Ltd. legal services division.

The larger crime was also recently broadcast on British channel Bravo on a television series called "Big Trouble in Tourist Thailand".

Many investors who say they were scammed in the gold scheme they learned about in the Pattaya Mail are coming forward. So far, more than a dozen alleged victims from Spain, Thailand, the UK, Australia and other countries have made police reports at Pattaya Police Station, to local authorities in their own countries and to Thai Embassies looking for help, justice and recovery of money.

The amount of money lost by investors is “well over one million dollars” says local teacher Graham Mitchell who admits he lost US $10,000 in the hiperfinance.com, tagged High Performance Finance, scheme promising returns of up to 20% per month to investors through a type of gold fund.

Another Pattaya resident, Alan Burnside, says he, his son Michael and a Thai friend Namjam Piote were cheated out of US$93,000 by the investment scheme advertised in a local Pattaya tabloid.

Mr. Burnside went to Nong Palai jail in on Highway 36 outside of Pattaya and spoke with Mr. Shaw as he was incarcerated. Mr. Burnside said he went to the prison on three separate occasions. Mr. Burnside said, “On September 23 Phillip Shields, who lost US $90,000 in the scam, his daughter, Namjam Pirote and I spoke directly with Mr. Shaw while he was behind bars in the prison and asked can he return everyone their money?”

Mr. Shaw is alleged by Mr. Burnside to say, “My money is invested in gold and a bank outside of Thailand. I have to get out so I can sell things and get you your money.”

Mr. Burnside said, “Mr. Shaw never denied the fraud, but did say he came to sort things out. Lance said he was not arrested when he entered the Kingdom rather he turned himself in to police.”

Mr. Burnside returned to the jail visitors section on September 30 with Thai investor Namjam Pirote and heard Mr. Shaw say, “I’ve got to get out. I’ve got to sell things to pay back all the people who have complained.” He looked drained and weary, said Mr. Burnside.

On October 2 Namjam Pirote and Mr. Burnside once again returned and there was a tall Thai man with a Thai lady who was talking in English to Mr. Shaw on the phone as Plexiglas separated visitors from prisoners.

Mr. Burnside said, “Lance Shaw and the Thai man motioned us to leave. We spoke with the warden of the jail who said, “We can’t choose the people to see Lance. He has to choose who he wants to see and Lance said he dose not want to see people claiming to be victims.”

In a written statement, Mr. Stanley Walter Long, a resident of Tenerife, Spain said, “I would like to make a charge against a man named Lance Fredrick Shaw an Australian national who has been arrested on numerous fraud charges and is in Nong Palai prison in Pattaya Chonburi Thailand.

He is also on a charge in Tenerife where the judge has frozen his bank account 250,000 US Dollars, and there is a warrant out for his arrest in Spain. This man also defrauded me of my life savings of 90,000 US Dollars.”

Thai police had refused to grant bail at a brief court hearing last week "due to the seriousness and number of charges against Shaw", reports said.

The reports said investors had lost homes, savings, wedding funds and retirement savings.

No date has been set for his next court appearance.