What Is Chen Zhi and the Prince Group, Targeted by the US and UK of Large-Scale Fraudulent Schemes?
The UK and United States have imposed sanctions on a global syndicate operating from south-east Asia, accused of orchestrating extensive online scam operations that are suspected of exploiting victims of human trafficking to defraud individuals globally.
This industry has flourished in the past few years, especially in certain areas in Myanmar and Cambodia where countless individuals have been deceived by false job adverts and then coerced to carry out internet scams, including romance scams, sometimes under the threat of physical harm.
The US treasury department stated it had implemented what it described as the most significant measure to date in south-east Asia, targeting 146 people connected to the Prince Group, which the United Kingdom also sanctioned.
Those targeted include the leader of the Prince group, the accused figure, as well as numerous individuals connected to his business operations throughout south-east Asia and the Pacific.
Understanding the Alleged Syndicate and the Identity of Chen Zhi?
Based on official statements, the individual in question, 38, also referred to as “the alias”, is the leader and establisher of Prince Holding Group (the group), a global corporate entity headquartered in Cambodia which, according to its website, is focused on “real estate development, financial services and retail offerings”.
On October 14, American officials stated that Chen, who remains at large, had been indicted for wire fraud conspiracy and money laundering conspiracy for overseeing the group's activities of forced labour scam compounds throughout Cambodia.
His swift rise to riches has won him substantial clout, comprising alleged consulting positions to the nation's leader. Chen, born in China in 1987, is believed to have acquired nationality in Vanuatu and Cyprus, and is also a citizen of Cambodia.
Reasons Behind They Been Sanctioned?
The Department of Justice claimed people had been held against their will in the fraudulent operation centers connected to the syndicate and made to participate in a variety of deceptive practices that defrauded billions of dollars from victims in the United States and globally.
As part of the investigation into the leader, the US and UK have seized $15 billion (£11.3 billion) in bitcoin and blocked properties in London.
The frozen properties are believed to comprise a £12 million residence on Avenue Road, one of London’s most expensive addresses, a £95m office block on Fenchurch Street in the heart of the London's banking area, and several flats in downtown London.
“Now the Federal Bureau of Investigation and partners carried out one of the largest financial fraud takedowns in recorded time,” said the bureau's head the official in a statement about the measures.
Other Parties Is Involved?
According to the senior justice official, Chen was the alleged “mastermind behind a sprawling cyber-fraud empire functioning under the Prince Group umbrella”. He was placed on a American blacklist this month together with over a dozen other individuals believed to be participating in his commercial network.
Over a hundred business entities – registered in Cambodia, Singapore, Hong Kong and Taiwan and more – were also placed on a blacklist because of alleged links to the leader.
What will the Sanctions Achieve?
Cambodia’s interior ministry spokesperson told news agencies that the government would work together with other countries in the legal proceeding against Chen.
“We are not shielding individuals that violate the law,” the official said. “But it does not mean that we are accusing Prince Group or Chen Zhi of engaging in illegal acts similar to the allegations issued by the US or the UK.”
In spite of the historic set of penalties, analysts say the fraud sector is still massive, with the UN estimating in 2023 that about a hundred thousand individuals were being compelled to carry out internet fraud in Cambodia, as well as at least one hundred twenty thousand in the neighboring country and tens of thousands in Thailand, Laos and the Philippines.
Considering the widespread nature of the enterprise in multiple Southeast Asian nations, some worry any arrests will create a gap for other transnational groups to swoop in.