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A German man told investigators yesterday that he had paid some Thais 800,850 baht after they threatened to shut down his luxury villa while it was still being built.
Ulrich Schmidt, 47, said he was visited when his Best World Vision Villas project was under construction and he transferred the money believing it would enable him to operate his business.
He then offered rooms to paying guests.
But the hoteliers’ association on the holiday island reported the villa owner to the authorities for operating without a license and taking business away from legitimate Thai operators.
Authorities from Region 4 including police and soldiers went to the property on Chaweng Noi hill in Bo Phut.
The German owner was unable to produce a licence, building permit or guest registration books.
He has been charged with not having a license to operate a hotel, illegal work practices and not reporting foreign guests within 24 hours.
He was told to make a formal complaint with evidence of transfer of the alleged 800,850 payment.