What Is Chen Zhi and the So-Called Crime Network, Accused by the US and UK of Massive Fraudulent Schemes?
The UK and US have enforced measures on a global syndicate operating from Southeast Asia, accused of orchestrating large-scale internet fraud schemes that are suspected of using trafficked workers to defraud individuals globally.
This criminal enterprise has flourished in the past few years, particularly in parts of Myanmar and Cambodia where hundreds of thousands have been duped by false job adverts and then forced to commit internet scams, including romance scams, sometimes under the menace of physical harm.
The US treasury department stated it had implemented what it called the largest action ever in Southeast Asia, targeting over a hundred individuals connected to the Prince Group, which the UK also sanctioned.
Those sanctioned comprise the leader of the alleged network, Chen Zhi, as well as more than a dozen individuals connected to his business operations across south-east Asia and the Pacific.
What is the Alleged Syndicate and the Identity of Chen Zhi?
Based on authoritative sources, Chen Zhi, 38, also referred to as “the alias”, is the leader and establisher of Prince Holding Group (the group), a multinational business conglomerate headquartered in the Southeast Asian nation which, as per its online presence, is centered around “property investment, financial services and retail offerings”.
On 14 October, American officials stated that the accused, who remains at large, had been indicted for wire fraud conspiracy and conspiracy to launder money for directing the group's activities of fraud centers using coerced labor throughout Cambodia.
Chen’s rapid ascent to wealth has won him substantial clout, including reported advisory roles to the nation's leader. Chen, a native of China from 1987, is thought to have bought citizenship in Vanuatu and Cyprus, and is also a Cambodian national.
Reasons Behind They Been Penalized?
The Department of Justice claimed people had been held against their will in the scam compounds linked with the group and made to participate in a variety 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 (£11.3 billion) in cryptocurrency and blocked London assets.
The seized assets are thought to include a £12m residence on a prestigious street, one of London’s most expensive addresses, a £95 million commercial building on Fenchurch Street in the heart of the London's banking area, and several flats in downtown London.
“Today the Federal Bureau of Investigation and allies executed one of the largest financial fraud takedowns in history,” said the bureau's head Kash Patel in a announcement about the actions.
Who else Is Involved?
Based on the senior justice official, Chen was the alleged “chief architect behind a vast cyber-fraud empire operating under the group's banner”. He was placed on a US sanctions list this October together with over a dozen additional persons suspected of being participating in his commercial network.
Over a hundred corporate bodies – based in multiple Asian jurisdictions and more – were also added to a blacklist because of suspected connections to Chen.
What will the Measures Achieve?
A representative from Cambodia's government told news agencies that the government would cooperate with other countries in the legal proceeding against Chen.
“We are not shielding individuals that break regulations,” the official said. “However, this does not imply that we blame the group or its leader of committing crimes similar to the allegations made by the United States or UK.”
Despite the historic set of penalties, experts say the fraud sector is still enormous, with the UN calculating 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 Myanmar and tens of thousands in other Southeast Asian states.
Considering the widespread nature of the enterprise in several Southeast Asian nations, certain fear any apprehensions will leave a vacuum for additional global syndicates to take over.
