What Is Chen Zhi and the Prince Group, Accused by the US and UK of Massive Fraudulent Schemes?
The United Kingdom and United States have enforced measures on a global syndicate based in Southeast Asia, allegedly running extensive online scam operations that are believed to exploiting trafficked workers to swindle individuals globally.
This criminal enterprise has expanded in the past few years, especially in parts of Myanmar and Cambodia where countless individuals have been duped by fraudulent employment offers and then coerced to carry out online fraud, such as fake relationship schemes, sometimes under the threat of torture.
The United States Treasury stated it had implemented what it described as the largest action ever in Southeast Asia, targeting 146 people associated with the Prince Group, which the UK also penalized.
Those sanctioned comprise the leader of the alleged network, Chen Zhi, 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 official statements, Chen Zhi, 38, also known as “the alias”, is the leader and establisher of Prince Holding Group (the group), a global corporate entity headquartered in the Southeast Asian nation which, according to its website, is focused on “real estate development, banking operations and retail offerings”.
On 14 October, US authorities stated that the accused, who remains at large, had been charged with conspiracy to commit fraud and conspiracy to launder money for overseeing the group's activities of fraud centers using coerced labor throughout the country.
His swift rise to riches has gained him substantial clout, comprising alleged consulting positions to the nation's leader. Chen, born in China in 1987, is thought to have acquired nationality in Vanuatu and Cyprus, and is also a citizen of Cambodia.
Why have They Been Penalized?
The US justice department claimed individuals had been forcibly detained in the fraudulent operation centers connected to the group and made to engage in a variety of deceptive practices that defrauded billions of dollars from targets in the US and worldwide.
As part of the probe into Chen, the US and UK have confiscated $15bn (£11.3 billion) in cryptocurrency and frozen London assets.
The frozen properties are believed to comprise a £12 million residence on a prestigious street, one of the costliest locations in London, a £95m commercial building on Fenchurch Street in the center of the London's banking area, and several flats in central London.
“Today the Federal Bureau of Investigation and allies carried out one of the largest financial fraud takedowns in history,” said FBI director the official in a statement about the actions.
Other Parties Is Involved?
Based on the US assistant attorney general, Chen was the supposed “mastermind behind a vast cyber-fraud empire functioning under the Prince Group umbrella”. He was added to a American blacklist this October together with more than a dozen other individuals suspected of being involved in his commercial network.
More than 100 corporate bodies – registered in Cambodia, Singapore, Hong Kong and Taiwan and more – were also placed on a blacklist because of alleged links to Chen.
Impact of the Sanctions Do?
Cambodia’s interior ministry spokesperson told news agencies that the government would cooperate with other countries in the case against the individual.
“We are not protecting individuals that break regulations,” the official said. “However, this does not imply that we are accusing the group or its leader of engaging in illegal acts like the allegations made by the United States or UK.”
In spite of the historic set of penalties, experts say the scam industry is still enormous, with the UN calculating in recent years that about a hundred thousand individuals were being compelled to carry out online scams in Cambodia, as well as at least 120,000 in the neighboring country and many thousands in Thailand, Laos and the Philippines.
Given the widespread nature of the enterprise in several Southeast Asian nations, certain fear any apprehensions will leave a vacuum for other transnational groups to swoop in.
