Thailand’s iCon scandal shows enduring popularity of get-rich-quick schemes
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A police investigation into an alleged pyramid scheme that claimed revenues of more than US$300 million and attracted hundreds of thousands of members highlights a lucrative yet deceptive business model that’s becoming increasingly popular in Thailand – leveraging celebrity endorsements to lure in unsuspecting members of the public.
More than 740 complaints have surfaced so far against The iCon Group, Thailand’s Central Intelligence Bureau said late on Monday, alleging losses of about US$8 million.
Founded six years ago by Waratpol Waratworakul – better known as “Boss Paul” – the company leveraged his rags-to-riches narrative to draw in as many as 400,000 recruits eager to sell beauty products and supplements through a multilevel marketing scheme.
But many of these hopeful members claim they were duped into buying sales courses and opening credit lines of up to 250,000 baht (US$7,500) to acquire more products, all in the name of climbing the company’s ranks and leading their own sales teams.
As new recruits signed up, they expanded their networks, creating a sprawling web of participants numbering between 300,000 and 400,000. Yet, when products failed to materialise or went unsold, countless members saw their savings wiped out, lawyers for the victims allege.
In a tearful two-hour television interview on Tuesday night, Boss Paul was confronted by the widow of a man who took his own life due to debts incurred after signing up to iCon.
“I’m so sorry for your loss,” he said, weeping and vowing to compensate the victims.
“I will help compensate them until my last baht … And if I run out of money, I will work to find money to pay them all back.”
In a May advertisement, Boss Paul stood behind a row of supercars promising to make people who signed up to iCon rich, with claims of generating 11 billion baht (US$330 million) in sales over the last five years.
The iCon website was still active as of Tuesday evening, peddling dietary supplements, whey protein, coffee with apparent special health benefits and toothpaste for between 299 and 599 baht a unit, accompanied by the tagline “The more you buy the more income you make”.
Content retrieved from: https://www.scmp.com/week-asia/people/article/3282491/thailand-cant-get-enough-get-rich-quick-schemes-icon-scandal-shows.
