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 United States have imposed sanctions on a multinational network operating from south-east Asia, accused of orchestrating extensive internet fraud schemes that are suspected of exploiting trafficked workers to swindle individuals globally.
This criminal enterprise has flourished in the past few years, especially in parts of Cambodia and Myanmar where hundreds of thousands have been duped by false job adverts and then coerced to carry out internet scams, such as fake relationship schemes, sometimes under the menace of physical harm.
The United States Treasury stated it had taken what it described as the largest action ever in south-east Asia, targeting over a hundred individuals connected to the so-called organization, which the United Kingdom also sanctioned.
Those targeted include the leader of the Prince group, Chen Zhi, as well as numerous persons linked with his commercial activities across south-east Asia and the Pacific.
Understanding the Alleged Syndicate and the Identity of 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 multinational business conglomerate based in Cambodia which, according to its website, is focused on “real estate development, financial services and consumer services”.
On October 14, US authorities stated that the accused, who is still evading capture, had been indicted for conspiracy to commit fraud and money laundering conspiracy for directing Prince Group’s operation of fraud centers using coerced labor throughout the country.
His swift rise to riches has won him significant political influence, comprising alleged consulting positions to Cambodia’s prime minister. The individual, born in China in 1987, is thought to have acquired nationality in Vanuatu and Cyprus, and is also a Cambodian national.
Reasons Behind the Group Been Penalized?
The Department of Justice claimed people had been forcibly detained in the fraudulent operation centers linked with the syndicate and made to participate in a variety of deceptive practices that defrauded billions of dollars from victims in the United States and worldwide.
As part of the probe into Chen, the US and UK have confiscated $15bn (£11.3 billion) in cryptocurrency and frozen London assets.
The frozen properties are thought to include a £12m mansion on Avenue Road, one of the costliest locations in London, a £95 million office block on a key financial avenue in the heart of the City of London’s financial district, and multiple apartments in downtown London.
“Today the FBI and allies executed one of the biggest crackdowns on fraud in recorded time,” said the bureau's head the official in a announcement about the measures.
Other Parties Is Involved?
According to the US assistant attorney general, Chen was the supposed “mastermind behind a vast cyber-fraud empire operating under the Prince Group umbrella”. He was placed on a US sanctions list this October alongside more than a dozen additional persons believed to be participating in his commercial network.
More than 100 business entities – registered in multiple Asian jurisdictions and more – were also placed on a sanctions list because of alleged links to the leader.
What will the Measures Achieve?
A representative from Cambodia's government told media outlets that the authorities would work together with foreign nations in the legal proceeding against the individual.
“We do not shielding persons that violate the law,” the official said. “However, this does not imply that we blame the group or its leader of engaging in illegal acts like the allegations made by the United States or UK.”
Despite the historic set of penalties, experts say the fraud sector is still massive, with the UN estimating in recent years that about a hundred thousand individuals were being forced to execute online scams in Cambodia, as well as at least 120,000 in Myanmar and tens of thousands in other Southeast Asian states.
Considering the prevalence of the enterprise in several south-east Asian countries, certain fear any apprehensions will create a gap for additional global syndicates to swoop in.
