By Xiuhao Chen and Panu Wongcha-um
BEIJING, Jan 8 (Reuters) – Chinese television showed footage of U.S.-indicted tycoon Chen Zhi being escorted by armed police after his extradition to China from Cambodia, where authorities on Thursday ordered the liquidation of a bank he founded linked to a massive “scam centre” network.
Chen, who chairs a conglomerate the United States says is a front for a multibillion-dollar online fraud operation, was shown in handcuffs and hooded as he was led off a plane at a Beijing airport by black-clad SWAT officers, with state broadcaster CCTV describing him as the “leader of a major transnational gambling and fraud crime syndicate”.
The surprise arrest of Chen is the biggest step yet in efforts by a number of countries to crack down on sprawling compounds in Southeast Asia that house tens of thousands of workers, many trafficked and forced into scamming victims around the world, in what the United Nations says has evolved into a sophisticated global industry.
The extradition of the young tycoon was announced late Wednesday by Cambodia, the base of his Prince Group of businesses, after what the Interior Ministry there said was a months-long joint transnational crime investigation with China.
It is not immediately clear what charges China-born Chen faces, and China’s Ministry of Foreign Affairs said authorities were collaborating to combat cross-border telecom fraud scams.
“China is willing to strengthen law enforcement cooperation with neighbouring countries, including Cambodia, to safeguard the safety of people’s lives and property,” ministry spokesperson Mao Ning told a regular briefing.
BUSINESS EMPIRE LINKED TO SCAMMING NETWORK
The U.S. Justice Department in October indicted Chen for wire fraud conspiracy and money-laundering conspiracy, and authorities have linked Prince Group, which operated more than 100 businesses in 30 countries, to a network of scam centres mainly in Cambodia and Myanmar that have defrauded victims globally.
Cambodia’s central bank on Thursday announced the liquidation of Prince Bank, a lender founded by Chen, the latest in a series of moves against entities under or linked to the group across Asia, from Hong Kong and Singapore to Taiwan and South Korea.
It gave no reason for the liquidation and it was not immediately clear if Cambodian authorities would target other Prince Group entities.
Britain and the United States sanctioned Prince Group in October and weeks later authorities in Hong Kong and Singapore froze or seized assets worth $354 million and $116 million linked to the company, which has businesses ranging from real estate and financial services to banking, leisure and hospitality.
Prince Bank did not immediately respond to a request for comment on Thursday and Prince Group could not be reached.
Prince Group had in November said U.S. allegations of criminal activity by Chen were baseless and aimed at unlawfully seizing billions of dollars.
CCTV in its report on Thursday said Chen was wanted on suspicion of fraud and operating illegal casinos, and it added that authorities would release a wanted list of key members of the “Chen Zhi criminal group” whom it urged to surrender at once.
MEGA CROSS-BORDER SYNDICATE
Cambodia’s Interior Ministry said on Wednesday that it had extradited three Chinese nationals including Chen to China at Beijing’s request.
The Cambodian ministry statement did not provide details on Chen or his alleged crimes, but it said his Cambodian citizenship had been revoked.
Beijing’s Public Security Bureau had set up a special task force to investigate individuals involved with Cambodia’s Prince Group in 2020, calling the group a “mega cross-border online gambling syndicate”, a Chinese court document released in 2022 showed.
The Cambodian ministry had also instructed other local authorities to make arrests in collaboration with the task force from Beijing, according to the document.
(Reporting by Xiuhao Chen in Beijing and Panu Wongcha-um in Bangkok; Additional reporting by Laurie Chen and Shi Bu in Beijing; Writing by Martin Petty and Liz Lee; Editing by Alexandra Hudson and Hugh Lawson)
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