What Is Chen Zhi and the So-Called Crime Network, 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 based in Southeast Asia, allegedly orchestrating large-scale internet fraud schemes that are suspected of using victims of human trafficking to swindle individuals globally.
This industry has expanded in the past few years, particularly in certain areas in Myanmar and Cambodia where countless individuals have been deceived 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 implemented what it described as the largest action ever in south-east Asia, targeting 146 people connected to the so-called organization, which the United Kingdom also sanctioned.
Those sanctioned comprise the leader of the Prince group, the accused figure, as well as numerous persons connected to his commercial activities across south-east Asia and the Pacific.
What is the Prince Group and Who is 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 multinational business conglomerate headquartered in Cambodia which, according to its website, is centered around “property investment, financial services and consumer services”.
On 14 October, American officials stated that the accused, who remains at large, had been charged with conspiracy to commit fraud and conspiracy to launder money for overseeing the group's activities 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. The individual, born in China in 1987, is thought to have bought citizenship in Vanuatu and Cyprus, and is also a citizen of Cambodia.
Why have the Group Been Sanctioned?
The US justice department alleged individuals had been forcibly detained in the scam compounds connected to the syndicate and made to participate in a variety of deceptive practices that defrauded massive sums from targets in the United States and worldwide.
As part of the probe into Chen, the US and UK have seized $15 billion (£11.3 billion) in cryptocurrency and frozen properties in London.
The frozen properties are believed to comprise a £12 million residence on Avenue Road, one of the costliest locations in London, a £95m commercial building on Fenchurch Street in the center of the London's banking area, and several flats in central London.
“Today the FBI and partners executed one of the biggest crackdowns on fraud in recorded time,” said FBI director the official in a announcement about the actions.
Who else Is Involved?
According to the US assistant attorney general, Chen was the alleged “chief architect behind a sprawling cyber-fraud empire operating under the group's banner”. He was added to a US sanctions list this month alongside over a dozen other individuals suspected of being participating in his commercial network.
Over a hundred business entities – based in multiple Asian jurisdictions among others – were also placed on a sanctions list because of suspected connections to Chen.
Impact of the Sanctions Achieve?
A representative from Cambodia's government told media outlets that the government would work together with foreign nations in the case against the individual.
“We do not protecting persons that violate the law,” the official said. “However, this does not imply that we blame the group or its leader of committing crimes like the claims issued by the US or the UK.”
In spite of the unprecedented tranche of sanctions, 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 the nation, as well as at least one hundred twenty thousand in Myanmar and many thousands in Thailand, Laos and the Philippines.
Given the widespread nature of the enterprise in multiple Southeast Asian nations, some worry any arrests will leave a vacuum for additional global syndicates to swoop in.
