Who Is Chen Zhi and the So-Called Crime Network, Targeted by the US and UK of Massive Scam Operations?
The UK and US have imposed sanctions on a multinational network based in south-east Asia, allegedly running extensive online scam operations that are suspected of using victims of human trafficking to swindle individuals around the world.
This criminal enterprise has expanded in recent years, especially in parts of Myanmar and Cambodia where countless individuals have been deceived by fraudulent employment offers and then forced to commit online fraud, such as fake relationship schemes, often under the threat of physical harm.
The US treasury department stated it had taken what it described as the largest action ever in south-east Asia, focusing on 146 people connected to the Prince Group, which the United Kingdom also sanctioned.
Those sanctioned include the leader of the Prince group, 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 the Identity of Chen Zhi?
Based on official statements, Chen Zhi, thirty-eight, also known as “Vincent”, is the leader and establisher of the so-called conglomerate (the group), a global corporate entity headquartered in the Southeast Asian nation which, according to its website, is focused on “property investment, financial services and retail offerings”.
On 14 October, American officials stated that Chen, who remains at large, had been indicted for wire fraud conspiracy and money laundering conspiracy for overseeing the group's activities of fraud centers using coerced labor throughout the country.
Chen’s rapid ascent to wealth has gained him significant political influence, 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.
Why have They Been Sanctioned?
The Department of Justice alleged people had been forcibly detained in the scam compounds linked with the group and made to engage in a variety of deceptive practices that defrauded billions of dollars from victims in the US and globally.
As part of the investigation into the leader, the United States and UK have seized $15bn (£11.3bn) in cryptocurrency and frozen properties in London.
The frozen properties are believed to comprise a £12m residence on a prestigious street, one of London’s most expensive addresses, a £95m commercial building on Fenchurch Street in the heart of the City of London’s financial district, and several flats in downtown London.
“Now the FBI and allies carried out one of the largest financial fraud takedowns in history,” said FBI director the official in a statement about the measures.
Other Parties Is Involved?
According to the senior justice official, Chen was the supposed “chief architect behind a vast cyber-fraud empire functioning under the Prince Group umbrella”. He was placed on a US sanctions list this October together with over a dozen additional persons suspected of being 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 Chen.
Impact of the Sanctions Do?
A representative from Cambodia's government told news agencies that the government would cooperate with other countries in the case against the individual.
“We do not shielding individuals that break regulations,” the official said. “But it does not mean that we blame Prince Group or Chen Zhi of committing crimes like the claims made by the US or the UK.”
In spite of the historic set of penalties, experts say the fraud sector is still massive, with the UN calculating in recent years that about a hundred thousand individuals were being compelled to execute internet fraud in Cambodia, as well as at least 120,000 in Myanmar and tens of thousands in Thailand, Laos and the Philippines.
Given the widespread nature of the industry in multiple Southeast Asian nations, certain worry any arrests will create a gap for other transnational groups to swoop in.
