What Is Chen Zhi and the Prince Group, Targeted by the United States and United Kingdom of Large-Scale Fraudulent Schemes?

The UK and United States have imposed sanctions on a global syndicate operating from Southeast Asia, accused of running large-scale internet fraud schemes that are suspected of using victims of human trafficking to swindle people globally.

This criminal enterprise has flourished in recent years, particularly in certain areas in Myanmar and Cambodia where hundreds of thousands have been deceived by fraudulent employment offers and then coerced to commit online fraud, such as romance scams, sometimes under the menace of torture.

The US treasury department stated it had taken what it described as the largest action ever in Southeast Asia, focusing on over a hundred individuals associated with the so-called organization, which the United Kingdom also sanctioned.

Those sanctioned comprise the head of the alleged network, Chen Zhi, as well as more than a dozen individuals linked with his commercial activities throughout south-east Asia and the Pacific.

What is the Alleged Syndicate and the Identity of Chen Zhi?

Based on official statements, the individual in question, 38, also known as “the alias”, is the leader and establisher of the so-called conglomerate (Prince Group), a multinational business conglomerate based in the Southeast Asian nation which, as per its online presence, is focused on “property investment, financial services and retail offerings”.

On October 14, American officials stated that the accused, who is still evading capture, had been charged with conspiracy to commit fraud and money laundering conspiracy for directing Prince Group’s operation of forced labour scam compounds throughout Cambodia.

Chen’s rapid ascent to wealth has won him substantial clout, including reported advisory roles to Cambodia’s prime minister. The individual, a native of China from 1987, is thought to have bought citizenship in Cyprus and Vanuatu, and is also a Cambodian national.

Reasons Behind the Group Been Penalized?

The US justice department claimed people had been held against their will in the scam compounds linked with the group and forced to engage in a range of fraudulent schemes that stole billions of dollars from targets in the US and globally.

As part of the probe into Chen, the US and UK have confiscated $15bn (£11.3 billion) in cryptocurrency and blocked 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 a key financial avenue in the heart of the City of London’s financial district, and multiple apartments in downtown London.

“Today the Federal Bureau of Investigation 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 actions.

Other Parties Are Implicated?

Based on the US assistant attorney general, Chen was the alleged “chief architect behind a vast digital scam network functioning under the Prince Group umbrella”. He was added to a US sanctions list this October alongside over a dozen additional persons suspected of being involved in his business empire.

More than 100 corporate bodies – based in Cambodia, Singapore, Hong Kong and Taiwan among others – were also placed on a blacklist because of suspected connections to the leader.

What will the Sanctions Achieve?

A representative from Cambodia's government told media outlets that the government would cooperate with other countries in the legal proceeding against Chen.

“We do not protecting persons that break regulations,” the official said. “However, this does not imply that we are accusing the group or its leader of engaging in illegal acts similar to the claims issued by the US or the UK.”

In spite of the historic set of penalties, experts say the fraud sector is still massive, with the United Nations estimating in recent years that about 100,000 people were being compelled to carry out internet fraud in the nation, as well as at least 120,000 in the neighboring country and many thousands in other Southeast Asian states.

Given the prevalence of the enterprise in multiple Southeast Asian nations, some fear any apprehensions will leave a vacuum for additional global syndicates to take over.