What Are Chen Zhi and the Prince Group, Accused by the United States and United Kingdom of Large-Scale Scam Operations?
The United Kingdom and United States have imposed sanctions on a global syndicate based in Southeast Asia, accused of running large-scale internet fraud schemes that are believed to using trafficked workers to swindle individuals globally.
This industry has flourished in the past few years, especially in parts of Cambodia and Myanmar where countless individuals have been deceived by false job adverts and then coerced to carry out internet scams, such as fake relationship schemes, often under the threat of physical harm.
The United States Treasury stated it had taken what it called the most significant measure to date in south-east Asia, targeting over a hundred individuals connected to the so-called organization, which the United Kingdom also penalized.
Those targeted comprise the head of the Prince group, Chen Zhi, as well as more than a dozen individuals linked with his business operations across Southeast Asia and Pacific regions.
Understanding the Alleged Syndicate and the Identity of Chen Zhi?
Based on authoritative sources, the individual in question, 38, also known as “Vincent”, is the leader and establisher of the so-called conglomerate (the group), a multinational business conglomerate based in Cambodia which, as per its online presence, is focused on “property investment, financial services and retail offerings”.
On 14 October, US authorities stated that the accused, who is still evading capture, had been indicted for conspiracy to commit fraud and conspiracy to launder money for directing Prince Group’s operation of forced labour scam compounds across 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 Penalized?
The US justice department claimed individuals had been held against their will in the scam compounds linked with the syndicate and forced to participate in a variety of fraudulent schemes that stole billions of dollars from victims in the United States and globally.
As part of the probe into Chen, the United States and UK have seized $15bn (£11.3bn) in bitcoin and blocked properties in London.
The seized assets are thought to include a £12m mansion on a prestigious street, one of London’s most expensive addresses, a £95m office block on Fenchurch Street in the center of the City of London’s financial district, and multiple apartments in central London.
“Now the Federal Bureau of Investigation and allies carried out one of the biggest crackdowns on fraud in recorded time,” said the bureau's head the official in a statement about the measures.
Who else Is Involved?
According to the US assistant attorney general, Chen was the alleged “mastermind behind a sprawling cyber-fraud empire operating under the group's banner”. He was placed on a US sanctions list this October together with over a dozen additional persons suspected of being participating in his commercial network.
More than 100 corporate bodies – registered in multiple Asian jurisdictions and more – were also placed on a sanctions list because of suspected connections to the leader.
Impact of the Measures Achieve?
A representative from Cambodia's government told media outlets that the government would cooperate with other countries in the legal proceeding against Chen.
“We are not protecting persons that break regulations,” he said. “However, this does not imply that we are accusing Prince Group or Chen Zhi of committing crimes like the allegations made by the US or the UK.”
In spite of the historic set of penalties, 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 Cambodia, as well as at least one hundred twenty thousand in Myanmar and many thousands in Thailand, Laos and the Philippines.
Considering the widespread nature of the industry in several Southeast Asian nations, some fear any apprehensions will create a gap for other transnational groups to swoop in.
