What Is Chen Zhi and the So-Called Crime Network, Targeted by the United States and United Kingdom of Large-Scale Fraudulent Schemes?
The United Kingdom and United States have imposed sanctions on a global syndicate operating from Southeast Asia, allegedly running large-scale internet fraud schemes that are suspected of using victims of human trafficking to defraud people around the world.
This criminal enterprise has flourished in recent years, particularly in certain areas in Myanmar and Cambodia where hundreds of thousands have been deceived by false job adverts and then coerced to carry out online fraud, such as 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, focusing on 146 people associated with the Prince Group, which the United Kingdom also sanctioned.
Those sanctioned include the leader of the Prince group, Chen Zhi, as well as numerous individuals connected to his business operations across south-east Asia and the Pacific.
Understanding the Prince Group and the Identity of Chen Zhi?
Based on official statements, Chen Zhi, thirty-eight, also referred to as “Vincent”, is the founder and chairman of Prince Holding Group (Prince Group), a global corporate entity headquartered in the Southeast Asian nation which, according to its website, is focused on “property investment, banking operations and retail offerings”.
On 14 October, US authorities stated that the accused, who remains at large, had been charged with conspiracy to commit fraud and conspiracy to launder money for directing Prince Group’s operation of fraud centers using coerced labor throughout the country.
His swift rise to riches has won him substantial clout, including alleged consulting positions to Cambodia’s prime minister. Chen, a native of China from 1987, is believed to have acquired nationality in Vanuatu and Cyprus, and is also a Cambodian national.
Why have They Been Sanctioned?
The US justice department alleged people had been held against their will in the fraudulent operation centers linked with the syndicate and forced to engage in a variety of deceptive practices that stole massive sums from targets in the US and globally.
As part of the investigation into Chen, the US and UK have seized $15 billion (£11.3bn) in cryptocurrency and frozen properties in London.
The frozen properties are thought to include a £12 million residence on a prestigious street, one of the costliest locations in London, a £95 million commercial building on Fenchurch Street in the center of the City of London’s financial district, and several flats in downtown London.
“Today the FBI and partners carried out one of the largest financial fraud takedowns in recorded time,” said the bureau's head Kash Patel in a announcement about the actions.
Who else Are Implicated?
Based on the senior justice official, the accused was the supposed “chief architect behind a sprawling digital scam network functioning under the group's banner”. He was placed on a American blacklist this month together with over a dozen other individuals suspected of being participating in his commercial network.
Over a hundred corporate bodies – registered in multiple Asian jurisdictions among others – were also placed on a sanctions list because of suspected connections to the leader.
Impact of the Sanctions Do?
Cambodia’s interior ministry spokesperson told media outlets that the government would cooperate with foreign nations in the case against Chen.
“We are not protecting individuals that violate the law,” the official said. “But it does not mean that we are accusing Prince Group or Chen Zhi of committing crimes similar to the allegations made by the US or the UK.”
In spite of the historic set of penalties, analysts say the fraud sector is still enormous, with the UN estimating in recent years that about a hundred thousand individuals were being forced to execute internet fraud in the nation, as well as at least one hundred twenty thousand in Myanmar and tens of thousands in other Southeast Asian states.
Given the prevalence of the industry in several Southeast Asian nations, certain worry any apprehensions will create a gap for other transnational groups to take over.