Table of Contents

1. What is a “money-pooling group”?
2. Is money-pooling group illegal?
3. What to do if the hosting cheats?
4. Steps to sue the hosting
5. Is a share case a civil or criminal matter?

What is a “money-pooling group”?

Money-pooling group is a collective savings activity among a group of acquaintances, where participants agree on the amount to contribute and the number of installments to be paid into a common fund. A designated person, known as the “Hosting,” manages the share play by coordinating meetings and setting payment schedules, allowing members to take turns receiving the pooled money in each installment. This enables each participant to save or access funds for future use.

For example, if there are 10 members and one share leader, each member contributes an equal amount to the share leader in each round. The member who needs the pooled money the most offers a rate of return or interest. The share leader will then give the total pooled amount to the member who bids the highest interest rate.

The member who wins the bid for the benefit receives the lump sum first (similar to borrowing from the pool) and is obligated to pay the next installments along with the additional interest until the end of the agreed period. For instance, if they bid for a 10% interest, they would pay the regular installment plus 10% interest in subsequent rounds until all installments are completed.

Is money-pooling group Illegal?

Regular share play is typically not illegal, except when it violates certain provisions under the Share Play Act. The following conditions must be met to remain lawful:

• The group should be relatively small (not exceeding 30 participants).
• Share play should not be conducted as a business, legal entity, or organization.
• Clear, transparent management practices must be in place.
• No advertising or recruitment is allowed that resembles a pyramid scheme.
• The total pool per round must not exceed 300,000 THB.
• The share leader is prohibited from charging fees or receiving any benefits other than the pooled money, similar to other members.

What to Do if the hosting Cheats?

If a hosting intends to cheat, it typically occurs in one of the following ways:

• Running Away with the Money: The hosting may collect money from the members but then fails to pay out to the intended recipient, disappearing with all the funds.
• Excessive Member Recruitment Without Payment: The hosting may recruit more members than they can pay out, resulting in partial or non-payment.
• Falsifying Information: The hosting may falsify information to make it appear as though funds are circulating in the share play, when in fact there is no real payout or funds in the pool.

Steps to sue the hosting.

If the hosting has acted fraudulently and refuses to return the money, the affected members may proceed with legal action. Here are the steps to take:

• Collect Evidence: Gather all relevant evidence related to the share play, such as bank transfer records, money-pooling group agreements, and communication records with the share leader.
• File a Police Report: Report the incident at the police station so that law enforcement can begin an investigation.
• Pursue a Civil or Criminal Case: To recover funds and seek damages, one can file a civil lawsuit for monetary compensation. If fraudulent behavior is involved, criminal charges of fraud can also be pursued.
• Consult a Lawyer: If the case is complex, it is advisable to consult a lawyer to navigate the legal procedures accurately.

Is a Share Case a Civil or Criminal Matter?

Money-pooling group cases can be either civil or criminal, depending on whether the conditions under the money-pooling group act are violated. If they are, criminal penalties may apply; if not, it is considered a civil matter of contractual breach. However, if the case involves fraudulent behavior, it would qualify as a criminal offense and may even escalate to public fraud or pyramid scheme violations.

• Civil Case: If the claim involves recovering funds from the hosting without fraudulent intent, it can be pursued as a civil matter to reclaim the entitled funds.
• Criminal Case: If the hosting has committed fraud or deceived the public by intentionally taking funds and absconding, the case would fall under criminal charges of public fraud, which can result in imprisonment and fines.

Content by Lawyer Nadear

Compiled by Lawyer Champ