The incident occurred on Wednesday (12 July) when Perth-based businessman Roger John Hussey plunged to his death while parasailing on Phuket's Kata beach.
A video of the accident, thought to be shot by Mr. Hussey's wife, was posted to Facebook.
The 71-year-old soared through the air for a few moments before slipping from his harness in front of hundreds of beachgoers.
Roger John Hussey was briefly conscious when medics reached him, but he died shortly afterwards in hospital, police in Phuket said.
According to police, Rungroj had told the deceased man to hold on to certain clips, but the man instead pushed a button that released his harness, causing him to fall to the water.
He had also served global fuel giant Shell and his company was worth $250m (£193m).
The deceased man was a founder and CEO of a company worth USD250 million that operated in Australia and Asia as well as the author of several business books.
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According to reports, Hussey had breathing problems after being taken out to sea.
He later also studied at the renowned Stanford University in California, United States.
Lt. Col. Suwisit Keereerak, Deputy Chief Inspector of Karon Police Station, said they were now investigating the accident. Also charged was parasilor Rungroj Rakscheep, 38.
Landgate says in a statement: "He served the West Australian community in many ways - as a businessman, board member and advocate for a variety of community causes".
Mr Hussey's body was sent for a post-mortem examination to establish how he died as it is not known if he drowned or was killed by the impact.
Emily Jayne Collie was pulled unconscious from the water after crashing her jet-ski into one her boyfriend was riding in early February, again on Kata Beach.
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