Who Are Chen Zhi and the So-Called Crime Network, Accused by the US and UK of Massive Fraudulent Schemes?
The UK and US have enforced measures on a global syndicate based in Southeast Asia, allegedly orchestrating extensive online scam operations that are suspected of exploiting victims of human trafficking to swindle individuals around the world.
This industry has expanded in the past few years, particularly in parts of Cambodia and Myanmar where countless individuals have been duped by fraudulent employment offers and then forced to carry out internet scams, such as fake relationship schemes, often under the threat of torture.
The US treasury department stated it had taken what it called the most significant measure to date in south-east Asia, targeting 146 people connected to the so-called organization, which the UK also sanctioned.
Those sanctioned comprise the head of the alleged network, Chen Zhi, as well as numerous persons connected to his commercial activities across south-east Asia and the Pacific.
What is the Prince Group and the Identity of Chen Zhi?
Based on authoritative sources, Chen Zhi, 38, also known as “Vincent”, is the leader and establisher of Prince Holding Group (Prince Group), a global corporate entity headquartered in Cambodia which, according to its website, is centered around “property investment, banking operations and consumer services”.
On 14 October, American officials stated that the accused, who remains at large, had been charged with wire fraud conspiracy and conspiracy to launder money for directing Prince Group’s operation of fraud centers using coerced labor throughout the country.
Chen’s rapid ascent to wealth has won him significant political influence, comprising reported advisory roles to the nation's leader. Chen, a native of China from 1987, is believed to have bought citizenship in Vanuatu and Cyprus, and is also a citizen of Cambodia.
Why have the Group Been Penalized?
The US justice department alleged people had been held against their will in the fraudulent operation centers connected to the syndicate and forced to participate in a range 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 cryptocurrency and frozen London assets.
The seized assets are believed to comprise a £12m mansion on a prestigious street, one of the costliest locations in London, a £95m commercial building on a key financial avenue in the heart of the London's banking area, and several flats in downtown London.
“Today the FBI and partners executed one of the largest financial fraud takedowns in history,” said the bureau's head the official in a statement about the measures.
Other Parties Are Implicated?
According to the US assistant attorney general, the accused was the alleged “mastermind behind a vast cyber-fraud empire functioning under the Prince Group umbrella”. He was added to a US sanctions list this month together with more than a dozen other individuals believed to be involved in his business empire.
More than 100 corporate bodies – based in Cambodia, Singapore, Hong Kong and Taiwan and more – were also placed on a sanctions list because of alleged links to Chen.
Impact of the Measures Do?
Cambodia’s interior ministry spokesperson told news agencies that the government would cooperate with other countries in the legal proceeding against Chen.
“We do not shielding individuals that violate the law,” he said. “But it does not mean that we blame Prince Group or Chen Zhi of engaging in illegal acts similar to the allegations issued by the United States or UK.”
In spite of the unprecedented tranche of sanctions, analysts say the scam industry is still enormous, with the United Nations calculating in recent years that about a hundred thousand individuals were being compelled to execute internet fraud in Cambodia, as well as at least 120,000 in Myanmar and many thousands in Thailand, Laos and the Philippines.
Given the prevalence of the industry in several Southeast Asian nations, some fear any arrests will create a gap for additional global syndicates to take over.
