What Is the Alleged Leader and the Prince Group, Accused by the US and UK of Massive Scam Operations?
The United Kingdom and US have imposed sanctions on a multinational network operating from south-east Asia, accused of orchestrating large-scale internet fraud schemes that are believed to exploiting trafficked workers to defraud people around the world.
This industry has expanded in the past few years, especially in certain areas in Cambodia and Myanmar where hundreds of thousands have been deceived by fraudulent employment offers and then forced to carry out internet scams, such as romance scams, sometimes under the threat of torture.
The US treasury department stated it had taken what it described as the largest action ever in south-east Asia, targeting 146 people connected to the Prince Group, which the United Kingdom also penalized.
Those targeted include the head of the alleged network, the accused figure, as well as more than a dozen individuals connected to his business operations throughout south-east Asia and the Pacific.
Understanding the Prince Group and the Identity of Chen Zhi?
According to official statements, the individual in question, 38, also known as “the alias”, 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 Chen, who remains at large, had been charged with conspiracy to commit fraud and money laundering conspiracy for overseeing the group's activities of forced labour scam compounds throughout the country.
His swift rise to riches has gained him substantial clout, including reported advisory roles 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.
Why have the Group Been Penalized?
The Department of Justice alleged individuals had been held against their will in the scam compounds linked with the syndicate and forced to participate in a range of fraudulent schemes that stole massive sums from targets in the US and worldwide.
As part of the investigation into the leader, the US and UK have confiscated $15 billion (£11.3bn) in bitcoin and frozen London assets.
The seized assets are thought to include a £12m mansion on Avenue Road, 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 central London.
“Now the FBI and partners executed one of the largest financial fraud takedowns in history,” said FBI director the official in a statement about the measures.
Other Parties Is Involved?
Based on the US assistant attorney general, the accused was the alleged “mastermind behind a sprawling cyber-fraud empire functioning under the group's banner”. He was placed on a American blacklist this October alongside more than a dozen other individuals suspected of being participating in his business empire.
More than 100 business entities – based in multiple Asian jurisdictions among others – were also added to a sanctions list because of suspected connections to Chen.
What will the Sanctions Achieve?
A representative from Cambodia's government told news agencies that the authorities would work together with foreign nations in the legal proceeding against the individual.
“We are not shielding persons that violate the law,” he said. “But it does not mean that we are accusing the group or its leader of engaging in illegal acts similar to the allegations issued by the US or the UK.”
In spite of the unprecedented tranche of sanctions, analysts say the fraud sector is still enormous, with the UN estimating in recent years that about 100,000 people were being compelled to execute online scams in the nation, as well as at least one hundred twenty thousand in the neighboring country and many thousands in other Southeast Asian states.
Considering the prevalence of the enterprise in several south-east Asian countries, certain worry any apprehensions will create a gap for other transnational groups to take over.
