Who Is the Alleged Leader and the So-Called Crime Network, Accused by the United States and United Kingdom of Massive Fraudulent Schemes?
The United Kingdom and US have enforced measures on a global syndicate based in south-east Asia, accused of orchestrating extensive online scam operations that are suspected of exploiting victims of human trafficking to swindle individuals around the world.
This criminal enterprise has flourished in recent years, particularly in certain areas in Cambodia and Myanmar where hundreds of thousands have been duped by false job adverts and then forced to carry out internet scams, such as romance scams, often under the menace of physical harm.
The US treasury department stated it had implemented what it described as the most significant measure to date in Southeast Asia, focusing on 146 people associated with the so-called organization, which the United Kingdom also penalized.
Those targeted comprise the leader of the Prince group, the accused figure, as well as numerous individuals connected to his business operations across south-east Asia and the Pacific.
What is the Alleged Syndicate and Who is Chen Zhi?
Based on official statements, the individual in question, thirty-eight, also referred to as “the alias”, is the founder and chairman 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 “real estate development, banking operations and consumer services”.
On 14 October, US authorities stated that the accused, who is still evading capture, had been indicted for conspiracy to commit fraud and money laundering conspiracy for overseeing Prince Group’s operation of forced labour scam compounds throughout Cambodia.
His swift rise to riches has won him significant political influence, including reported advisory roles to the nation's leader. Chen, born in China in 1987, is thought to have bought citizenship in Vanuatu and Cyprus, and is also a Cambodian national.
Why have They Been Sanctioned?
The Department of Justice claimed people had been forcibly detained in the scam compounds linked with the syndicate and made to participate in a range of fraudulent schemes that stole massive sums from targets in the US and globally.
As part of the probe into Chen, the United States and UK have seized $15 billion (£11.3 billion) in cryptocurrency and blocked properties in London.
The frozen properties are believed to comprise a £12 million mansion on Avenue Road, one of London’s most expensive addresses, a £95 million office block on a key financial avenue in the heart of the City of London’s financial district, and multiple apartments in downtown London.
“Now the Federal Bureau of Investigation and partners executed one of the biggest crackdowns on fraud in history,” said FBI director Kash Patel in a statement about the measures.
Other Parties Are Implicated?
Based on the senior justice official, Chen was the supposed “mastermind behind a sprawling cyber-fraud empire operating under the group's banner”. He was added to a American blacklist this month together with more than a dozen other individuals believed to be involved in his business empire.
More than 100 business entities – based in multiple Asian jurisdictions among others – were also placed on a blacklist because of suspected connections to Chen.
What will the Sanctions Do?
A representative from Cambodia's government told media outlets that the government would work together with foreign nations in the case against the individual.
“We are not protecting individuals that violate the law,” he said. “However, this does not imply that we blame Prince Group or Chen Zhi of committing crimes like the claims issued by the US or the UK.”
In spite of the unprecedented tranche of sanctions, experts say the fraud sector is still massive, with the United Nations estimating in recent years that about 100,000 people were being compelled to execute internet fraud in the nation, 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 prevalence of the industry in multiple south-east Asian countries, some worry any apprehensions will create a gap for additional global syndicates to take over.
