Who Is the Alleged Leader and the So-Called Crime Network, Targeted by the United States and United Kingdom of Large-Scale Fraudulent Schemes?
The United Kingdom and US have enforced measures on a global syndicate operating from south-east Asia, accused of orchestrating extensive internet fraud schemes that are believed to exploiting trafficked workers to swindle people globally.
This criminal enterprise has flourished in recent years, especially in parts of Myanmar and Cambodia where hundreds of thousands have been deceived by fraudulent employment offers and then forced to carry out internet scams, such as fake relationship schemes, sometimes under the threat of physical harm.
The United States Treasury stated it had taken what it described as the most significant measure to date in south-east Asia, targeting over a hundred individuals connected to the so-called organization, which the UK also penalized.
Those targeted comprise the head of the alleged network, the accused figure, as well as more than a dozen persons linked with his commercial activities across Southeast Asia and Pacific regions.
What is the Prince Group and Who is Chen Zhi?
Based on authoritative sources, the individual in question, 38, also referred to as “the alias”, is the leader and establisher of the so-called conglomerate (Prince Group), a multinational business conglomerate headquartered in the Southeast Asian nation which, according to its website, is focused on “property investment, banking operations and consumer services”.
On 14 October, US authorities stated that Chen, who remains at large, had been charged with conspiracy to commit fraud and conspiracy to launder money for overseeing Prince Group’s operation of forced labour scam compounds throughout the country.
Chen’s rapid ascent to wealth has won him significant political influence, including reported advisory roles to the nation's leader. Chen, a native of China from 1987, is thought to have bought citizenship in Cyprus and Vanuatu, and is also a citizen of Cambodia.
Why have They Been Sanctioned?
The Department of Justice claimed people had been forcibly detained in the scam compounds connected to the syndicate and forced to participate in a range of deceptive practices that defrauded billions of dollars from targets in the US and globally.
As part of the investigation into the leader, the United States and UK have seized $15 billion (ÂŁ11.3bn) in cryptocurrency and frozen London assets.
The frozen properties are believed to comprise a £12m mansion on Avenue Road, one of London’s most expensive addresses, a £95m commercial building on a key financial avenue in the center of the City of London’s financial district, and multiple apartments in central London.
“Now the FBI 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 actions.
Other Parties Is Involved?
According to the senior justice official, the accused was the supposed “chief architect behind a vast cyber-fraud empire functioning under the Prince Group umbrella”. He was placed on a US sanctions list this month together with over a dozen other individuals believed to be involved in his business empire.
Over a hundred business entities – registered in Cambodia, Singapore, Hong Kong and Taiwan among others – were also added to a sanctions list because of suspected connections to Chen.
What will the Measures Do?
A representative from Cambodia's government told news agencies that the authorities would work together with other countries in the legal proceeding against the individual.
“We do not protecting persons that violate the law,” he said. “However, this does not imply that we are accusing the group or its leader of committing crimes like the claims made by the United States or UK.”
In spite of the unprecedented tranche of sanctions, experts say the fraud sector is still massive, with the UN estimating in recent years that about a hundred thousand individuals were being compelled to execute online scams in Cambodia, as well as at least 120,000 in Myanmar and many thousands in Thailand, Laos and the Philippines.
Considering the prevalence of the industry in multiple south-east Asian countries, certain fear any apprehensions will leave a vacuum for other transnational groups to take over.
