Who Are Chen Zhi and the Prince Group, Accused by the US and UK of Large-Scale Fraudulent Schemes?
The United Kingdom and US have imposed sanctions on a multinational network based in Southeast Asia, allegedly orchestrating extensive internet fraud schemes that are suspected of exploiting victims of human trafficking to defraud individuals around the world.
This criminal enterprise has expanded in the past few years, particularly in parts of Myanmar and Cambodia where hundreds of thousands have been duped by fraudulent employment offers and then forced to commit online fraud, including romance scams, 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, targeting 146 people associated with the so-called organization, which the UK also sanctioned.
Those sanctioned comprise the head of the alleged network, Chen Zhi, as well as numerous individuals linked with his commercial activities across south-east Asia and the Pacific.
What is the Alleged Syndicate and the Identity of Chen Zhi?
According to official statements, the individual in question, 38, also referred to as “Vincent”, is the leader and establisher of Prince Holding Group (Prince Group), a multinational business conglomerate headquartered in the Southeast Asian nation which, according to its website, is focused on “real estate development, financial services and retail offerings”.
On October 14, American officials stated that the accused, who remains at large, had been indicted for wire fraud conspiracy and conspiracy to launder money for overseeing Prince Group’s operation of fraud centers using coerced labor across Cambodia.
His swift rise to riches has gained him substantial clout, including reported advisory roles to Cambodia’s prime minister. Chen, born in China in 1987, is believed to have bought citizenship in Vanuatu and Cyprus, and is also a Cambodian national.
Reasons Behind the Group Been Penalized?
The Department of Justice claimed individuals had been held against their will in the fraudulent operation centers linked with the group and made to participate in a variety of fraudulent schemes that stole billions of dollars from victims in the US and globally.
As part of the probe into Chen, the United States and UK have confiscated $15bn (ÂŁ11.3bn) in bitcoin and blocked London assets.
The frozen properties are believed to comprise a £12m residence on a prestigious street, one of the costliest locations in London, a £95 million commercial building on a key financial avenue in the heart of the City of London’s financial district, and multiple apartments in central London.
“Now the Federal Bureau of Investigation and partners executed one of the largest financial fraud takedowns in history,” said FBI director Kash Patel in a announcement about the measures.
Who else Are Implicated?
According to the senior justice official, Chen was the supposed “mastermind behind a vast digital scam network functioning under the Prince Group umbrella”. He was added to a US sanctions list this month alongside over a dozen additional persons believed to be involved in his commercial network.
More than 100 business entities – based in multiple Asian jurisdictions among others – were also added to a blacklist because of alleged links to the leader.
Impact of the Sanctions Do?
A representative from Cambodia's government told media outlets that the authorities would cooperate with other countries in the legal proceeding against the individual.
“We are not shielding persons that break regulations,” he said. “However, this does not imply that we blame the group or its leader of engaging in illegal acts similar to the claims made by the US or the UK.”
In spite of the unprecedented tranche of sanctions, experts say the scam industry is still massive, with the United Nations estimating in 2023 that about a hundred thousand individuals were being forced to carry out online scams in Cambodia, as well as at least one hundred twenty thousand in Myanmar and tens of thousands in other Southeast Asian states.
Given the widespread nature of the industry in several south-east Asian countries, some worry any arrests will leave a vacuum for additional global syndicates to take over.
