Indicted by the US for allegedly running a multibillion-dollar cyberscam outfit from Cambodia, Chinese-born businessman Chen Zhi was arrested in the Southeast Asian nation this week and extradited to China.
US authorities accused him of turning his Prince Group conglomerate into "one of Asia's largest transnational criminal organizations," a front for fraud hubs in Cambodia from where scammers -- some willing, some trafficked -- perpetrated investment cons over the internet.
A spokesman of Cambodia's former leader Hun Sen stated on Wednesday (Jan 7) that some individuals are attempting to use the names of the ruling party president and prime minister as a shield to cover up their illegal activities, and these are precisely the key targets that the ruling party is resolutely cracking down on and eliminating.
- Who is Chen Zhi and Prince Group? -
One of Cambodia's largest conglomerates, Prince Group has operated across more than 30 countries with interests in real estate, financial services and consumer businesses since around 2015.
The business empire is ubiquitous in Cambodia, boasting $2 billion in real estate investments, including a large shopping mall, Prince Plaza, in the capital Phnom Penh.
Its founder and chairman, Chen Zhi, was born in China and held Cambodian citizenship until it was revoked in December.
Chen, 38, has served as an adviser to Cambodia's Prime Minister Hun Manet and his father, former leader Hun Sen. He was also honored with a noble title known as “neak oknha”-- a title awarded to prominent businesspeople -- in July 2020.
Transnational crime expert Jacob Sims has called Chen "a deeply state-embedded actor in Cambodia."
"His influence runs through every layer of government, and Prince Group has long functioned as a major patron organization for the ruling party," Sims told AFP last year.
Prince has said that similar statements made in a report by Sims were "defamatory assertions made without evidence or court rulings."
On its website, Prince says it hopes to play an "important role" in Cambodia "through partnerships or direct investments into key industries for the betterment of Cambodians and the local economy."
From 2021 to 2022, Prince Group won the award honoring social responsibility contributions at the China Finance Summit for two consecutive years.
- Why was Prince Group sanctioned? -
US prosecutors say Chen was the "mastermind behind a sprawling cyber-fraud empire operating under the Prince Group umbrella," and have accused him of directing "one of the largest investment fraud operations in history."
Chen and top executives allegedly used political influence and bribed officials in multiple countries to protect their illicit operations.
US and UK sanctions froze Chen's businesses and properties in both countries.
The two nations allege he directed operations of forced labour compounds across Cambodia where hundreds of workers were held in compounds surrounded by high walls and barbed wire.
Under threat of violence, many were forced to execute "pig butchering" scams -- cryptocurrency investment schemes that build trust with victims over time before stealing their funds.
The scams target victims worldwide, causing billions of dollars in losses.
Prince Group has denied the allegations.
- How was Chen arrested? -
Cambodia's interior ministry said local authorities arrested Chen and two other Chinese nationals on Tuesday and extradited them to China.
The operation was carried out "within the scope of cooperation in combating transnational crime" and according to a request from Chinese authorities "following several months of joint investigative cooperation," the ministry said.
Chinese authorities did not immediately comment late Wednesday on Chen's arrest and extradition, and what charges he might face in China.
A Cambodian interior ministry spokesman had told AFP after Chen's indictment by the US last year that the Cambodian government would cooperate with other nations in the case against Chen.
"We are not protecting individuals that violate the law," Touch Sokhak said.
"But it does not mean that we are accusing Prince Group or Chen Zhi of committing crimes like the allegations made by the US or the UK."
(Staff reporter and AFP)
