Who Are Chen Zhi and the Prince Group, Targeted by the United States and United Kingdom of Massive Scam Operations?
The United Kingdom and US have enforced measures on a multinational network operating from south-east Asia, allegedly orchestrating extensive online scam operations that are believed to exploiting trafficked workers to defraud people around the world.
This industry has flourished in recent years, particularly in certain areas in Myanmar and Cambodia where hundreds of thousands have been duped by fraudulent employment offers and then forced to carry out online fraud, such as fake relationship schemes, sometimes under the threat of torture.
The United States Treasury stated it had taken what it described as the most significant measure to date in Southeast Asia, focusing on over a hundred individuals associated with the so-called organization, which the UK also penalized.
Those sanctioned comprise the leader of the Prince group, Chen Zhi, as well as more than a dozen persons connected to his commercial activities across Southeast Asia and Pacific regions.
What is the Prince Group and Who is Chen Zhi?
Based on official statements, the individual in question, thirty-eight, also known as “Vincent”, is the founder and chairman of the so-called conglomerate (Prince Group), a multinational business conglomerate headquartered in Cambodia which, according to its website, is centered around “real estate development, banking operations and retail offerings”.
On October 14, US authorities stated that Chen, who is still evading capture, had been charged with wire fraud conspiracy and money laundering conspiracy for directing Prince Group’s operation of forced labour scam compounds across Cambodia.
His swift rise to riches has won him significant political influence, comprising alleged consulting positions to Cambodia’s prime minister. The individual, born in China in 1987, is thought to have acquired nationality in Cyprus and Vanuatu, and is also a citizen of Cambodia.
Why have They Been Sanctioned?
The US justice department claimed individuals had been held against their will in the fraudulent operation centers connected to the group and made to engage in a variety of fraudulent schemes that stole billions of dollars from targets in the United States and globally.
As part of the investigation into Chen, the United States and UK have seized $15 billion (£11.3bn) in cryptocurrency and frozen properties in London.
The seized assets are believed to comprise a £12 million residence on Avenue Road, one of London’s most expensive addresses, a £95m office block on a key financial avenue in the heart of the London's banking area, and several flats in downtown London.
“Now the FBI and partners carried out one of the largest financial fraud takedowns in history,” said FBI director the official in a statement about the measures.
Other Parties Is Involved?
Based on the senior justice official, Chen was the alleged “chief architect behind a sprawling digital scam network operating under the Prince Group umbrella”. He was added to a American blacklist this month together with over a dozen other individuals believed to be participating in his commercial network.
More than 100 corporate bodies – based in multiple Asian jurisdictions and more – were also added to a sanctions list because of suspected connections to Chen.
What will the Measures Achieve?
A representative from Cambodia's government told media outlets that the authorities would cooperate with other countries in the legal proceeding against Chen.
“We are not shielding individuals that violate the law,” the official said. “However, this does not imply that we are accusing Prince Group or Chen Zhi of committing crimes similar to the claims made by the US or the UK.”
In spite of the historic set of penalties, analysts say the fraud sector is still enormous, with the United Nations estimating in recent years that about 100,000 people were being forced to execute internet fraud in Cambodia, as well as at least 120,000 in Myanmar and many thousands in other Southeast Asian states.
Considering the prevalence of the industry in multiple south-east Asian countries, certain worry any arrests will create a gap for additional global syndicates to swoop in.