What Are the Alleged Leader and the Prince Group, Accused by the United States and United Kingdom of Large-Scale Scam Operations?
The United Kingdom and US have imposed sanctions on a global syndicate based in Southeast Asia, allegedly orchestrating large-scale online scam operations that are believed to exploiting trafficked workers to swindle individuals globally.
This criminal enterprise has expanded in the past few years, particularly in certain areas in Cambodia and Myanmar where hundreds of thousands have been deceived by false job adverts and then forced to carry out internet scams, including fake relationship schemes, often under the threat of physical harm.
The US treasury department stated it had implemented what it described as the largest action ever in Southeast Asia, focusing on 146 people connected to the Prince Group, which the United Kingdom also penalized.
Those targeted include the head of the alleged network, Chen Zhi, as well as more than a dozen persons connected to his business operations across south-east Asia and the Pacific.
Understanding the Alleged Syndicate and Who is Chen Zhi?
Based on official statements, Chen Zhi, 38, also referred to as “Vincent”, is the founder and chairman of Prince Holding Group (the group), a multinational business conglomerate headquartered in Cambodia which, according to its website, is centered around “property investment, banking operations and consumer services”.
On 14 October, American officials stated that Chen, who is still evading capture, had been charged with wire fraud conspiracy and money laundering conspiracy for overseeing Prince Group’s operation of forced labour scam compounds across the country.
His swift rise to riches has gained him substantial clout, comprising reported advisory roles to Cambodia’s prime minister. Chen, a native of China from 1987, is thought to have acquired nationality in Cyprus and Vanuatu, and is also a citizen of Cambodia.
Why have the Group Been Penalized?
The Department of Justice claimed individuals had been forcibly detained in the fraudulent operation centers connected to the syndicate and forced to participate in a range of fraudulent schemes that stole billions of dollars from victims in the United States and worldwide.
As part of the investigation into Chen, the United States and UK have seized $15bn (£11.3bn) in bitcoin and blocked properties in London.
The seized assets are believed to comprise a £12 million residence on Avenue Road, one of the costliest locations in London, a £95m office block on Fenchurch Street in the center of the London's banking area, and multiple apartments in central London.
“Now the Federal Bureau of Investigation and partners carried out one of the biggest crackdowns on fraud in recorded time,” said FBI director the official in a statement about the actions.
Other Parties Are Implicated?
According to the US assistant attorney general, the accused was the supposed “chief architect behind a sprawling digital scam network functioning under the Prince Group umbrella”. He was added to a American blacklist this month together with over a dozen additional persons believed to be involved in his business empire.
More than 100 business entities – registered in Cambodia, Singapore, Hong Kong and Taiwan among others – were also added to a blacklist because of suspected connections to Chen.
Impact of the Measures Achieve?
A representative from Cambodia's government told media outlets that the authorities would cooperate with foreign nations in the case against the individual.
“We are not shielding persons that violate the law,” the official said. “But it does not mean that we are accusing Prince Group or Chen Zhi of committing crimes like the claims issued by the United States or UK.”
Despite the unprecedented tranche of sanctions, analysts say the fraud sector is still massive, with the UN calculating in recent years that about a hundred thousand individuals were being compelled to carry out online scams in Cambodia, as well as at least one hundred twenty thousand in Myanmar and tens of thousands in Thailand, Laos and the Philippines.
Considering the widespread nature of the industry in multiple Southeast Asian nations, some fear any apprehensions will leave a vacuum for additional global syndicates to swoop in.
