Who Is Chen Zhi and the Prince Group, Accused by the United States and United Kingdom of Large-Scale Fraudulent Schemes?
The United Kingdom and US have enforced measures on a global syndicate operating from Southeast Asia, allegedly orchestrating extensive internet fraud schemes that are believed to using trafficked workers to swindle people around the world.
This criminal enterprise has expanded in the past few years, especially in certain areas in Myanmar and Cambodia where hundreds of thousands have been deceived by false job adverts and then forced to commit online fraud, including fake relationship schemes, often under the menace of torture.
The US treasury department stated it had implemented what it described as the most significant measure to date in south-east Asia, focusing on 146 people associated with the so-called organization, which the UK also sanctioned.
Those targeted comprise the head of the alleged network, the accused figure, as well as more than a dozen persons connected to his business operations across Southeast Asia and Pacific regions.
Understanding the Prince Group and Who is Chen Zhi?
Based on 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 based in the Southeast Asian nation which, as per its online presence, is centered around “real estate development, financial services and retail offerings”.
On October 14, American officials stated that the accused, who remains at large, had been charged with wire fraud conspiracy and money laundering conspiracy for directing the group's activities of forced labour scam compounds throughout the country.
His swift rise to riches has won him substantial clout, comprising alleged consulting positions to Cambodia’s prime minister. The individual, a native of China from 1987, is believed to have acquired nationality in Cyprus and Vanuatu, and is also a citizen of Cambodia.
Reasons Behind the Group Been Penalized?
The Department of Justice claimed individuals had been held against their will in the scam compounds connected to the syndicate and forced to engage in a variety of deceptive practices that defrauded billions of dollars from targets in the United States and worldwide.
As part of the probe into Chen, the US and UK have seized $15 billion (£11.3 billion) in cryptocurrency and blocked properties in London.
The frozen properties are believed to comprise a £12m mansion on Avenue Road, one of London’s most expensive addresses, a £95 million commercial building on Fenchurch Street in the center of the London's banking area, and several flats in downtown London.
“Today the Federal Bureau of Investigation and partners carried out one of the largest financial fraud takedowns in history,” said FBI director the official in a statement about the actions.
Other Parties Are Implicated?
Based on the US assistant attorney general, Chen was the alleged “mastermind behind a sprawling cyber-fraud empire functioning under the group's banner”. He was added to a American blacklist this month alongside over a dozen other individuals believed to be participating in his commercial network.
More than 100 corporate bodies – based in multiple Asian jurisdictions among others – were also added to a sanctions list because of alleged links to Chen.
What will the Sanctions Do?
A representative from Cambodia's government told news agencies that the authorities would cooperate with foreign nations in the legal proceeding against Chen.
“We are not shielding persons that break regulations,” the official said. “But it does not mean that we blame the group or its leader of committing crimes like the allegations issued by the US or the UK.”
Despite the unprecedented tranche of sanctions, analysts say the scam industry is still enormous, with the United Nations estimating in 2023 that about 100,000 people were being compelled to execute online scams in Cambodia, as well as at least 120,000 in Myanmar and many thousands in other Southeast Asian states.
Considering the widespread nature of the enterprise in several Southeast Asian nations, some worry any arrests will leave a vacuum for other transnational groups to swoop in.
