What Are Chen Zhi and the Prince Group, Accused by the US and UK of Large-Scale Scam Operations?
The UK and United States have imposed sanctions on a multinational network based in Southeast Asia, allegedly orchestrating large-scale online scam operations that are suspected of using trafficked workers to swindle individuals around the world.
This criminal enterprise has expanded in the past few years, especially in certain areas in Cambodia and Myanmar where countless individuals have been duped by false job adverts and then forced to carry out internet scams, such as romance scams, often under the threat of physical harm.
The US treasury department stated it had implemented what it called the largest action ever in south-east Asia, targeting over a hundred individuals associated with the so-called organization, which the United Kingdom also sanctioned.
Those targeted comprise the leader of the Prince group, Chen Zhi, as well as numerous individuals connected to his business operations across south-east Asia and the Pacific.
Understanding the Prince Group and the Identity of Chen Zhi?
According to official statements, Chen Zhi, thirty-eight, also referred to as “the alias”, is the leader and establisher of the so-called conglomerate (Prince Group), a global corporate entity headquartered in the Southeast Asian nation which, according to its website, is centered around “real estate development, financial services and retail offerings”.
On 14 October, US authorities stated that the accused, who is still evading capture, had been charged with wire fraud conspiracy and money laundering conspiracy for overseeing Prince Group’s operation of fraud centers using coerced labor throughout Cambodia.
His swift rise to riches has won him significant political influence, including alleged consulting positions to the nation's leader. Chen, born in China in 1987, is thought to have bought citizenship in Cyprus and Vanuatu, and is also a citizen of Cambodia.
Reasons Behind They Been Sanctioned?
The Department of Justice claimed people had been forcibly detained in the scam compounds linked with the group and made to participate in a range of deceptive practices that defrauded billions of dollars from victims in the US and globally.
As part of the investigation into the leader, the US and UK have seized $15bn (£11.3bn) in cryptocurrency 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 a key financial avenue in the heart of the London's banking area, and multiple apartments in central London.
“Today the Federal Bureau of Investigation and allies carried out one of the biggest crackdowns on fraud in history,” said FBI director the official in a statement about the measures.
Other Parties Is Involved?
According to the senior justice official, the accused was the alleged “chief architect behind a sprawling digital scam network operating under the group's banner”. He was added to a US sanctions list this month together with over a dozen other individuals suspected of being involved in his business empire.
Over a hundred corporate bodies – based in Cambodia, Singapore, Hong Kong and Taiwan among others – were also added to a sanctions list because of alleged links to Chen.
What will the Measures Achieve?
Cambodia’s interior ministry spokesperson told news agencies that the authorities would work together with other countries in the legal proceeding against the individual.
“We do not protecting individuals that break regulations,” the official said. “But it does not mean that we blame Prince Group or Chen Zhi of engaging in illegal acts similar to the claims issued by the US or the UK.”
Despite the historic set of penalties, experts say the fraud sector is still massive, with the UN estimating in 2023 that about 100,000 people were being compelled to carry out online scams in Cambodia, as well as at least one hundred twenty thousand in the neighboring country and tens of thousands in Thailand, Laos and the Philippines.
Considering the prevalence of the industry in multiple south-east Asian countries, some fear any arrests will create a gap for other transnational groups to take over.
