What Is Chen Zhi and the Prince Group, Targeted by the US and UK of Massive Scam Operations?
The UK and United States have imposed sanctions on a multinational network operating from south-east Asia, allegedly running extensive online scam operations that are believed to using victims of human trafficking to swindle people around the world.
This industry has flourished in recent years, particularly in parts of Myanmar and Cambodia where countless individuals 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 physical harm.
The US treasury department stated it had taken what it described as the most significant measure to date in Southeast Asia, focusing on 146 people connected to the Prince Group, which the UK also sanctioned.
Those targeted include the leader of the Prince group, Chen Zhi, as well as more than a dozen persons connected to his business operations across south-east Asia and the Pacific.
What is the Prince Group and Who is Chen Zhi?
According to authoritative sources, the individual in question, 38, also known as “the alias”, is the founder and chairman of the so-called conglomerate (Prince Group), a global corporate entity headquartered in the Southeast Asian nation which, as per its online presence, is centered around “real estate development, banking operations and retail offerings”.
On 14 October, US authorities stated that the accused, who remains at large, had been indicted for wire fraud conspiracy and conspiracy to launder money for directing Prince Group’s operation of fraud centers using coerced labor across Cambodia.
His swift rise to riches has gained him substantial clout, comprising reported advisory roles to Cambodia’s prime minister. 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 US justice department alleged people had been held against their will in the fraudulent operation centers connected to the syndicate and forced to engage in a range of deceptive practices that defrauded billions of dollars from victims in the US and globally.
As part of the probe into the leader, the US and UK have seized $15bn (£11.3bn) in cryptocurrency and frozen London assets.
The seized assets are thought to include a £12 million residence on a prestigious street, one of the costliest locations in London, a £95 million commercial building on a key financial avenue in the center of the London's banking area, and several flats in downtown London.
“Now the Federal Bureau of Investigation and partners executed one of the largest financial fraud takedowns in history,” said FBI director the official in a announcement about the actions.
Who else Is Involved?
Based on the senior justice official, Chen was the alleged “chief architect behind a vast cyber-fraud empire operating under the Prince Group umbrella”. He was added to a US sanctions list this October alongside more than a dozen other individuals believed to be participating in his business empire.
Over a hundred business entities – registered in Cambodia, Singapore, Hong Kong and Taiwan among others – were also added to a blacklist because of suspected connections to Chen.
Impact of the Measures Achieve?
A representative from Cambodia's government told media outlets that the government would cooperate with other countries in the case against Chen.
“We do not shielding persons that break regulations,” he said. “However, this does not imply that we are accusing the group or its leader of engaging in illegal acts similar to the allegations issued by the United States or UK.”
Despite the unprecedented tranche of sanctions, analysts say the scam industry is still enormous, with the United Nations estimating in recent years that about 100,000 people were being forced to carry out internet fraud in the nation, as well as at least one hundred twenty thousand in the neighboring country and many thousands in Thailand, Laos and the Philippines.
Considering the prevalence of the enterprise in several Southeast Asian nations, some fear any apprehensions will leave a vacuum for additional global syndicates to swoop in.
