Unused casinos have become centers of fraudulent activity run by gangs from Southeast Asia, according to a joint report by the governments of the United Kingdom and the United States.
According to the report, facilities across the region are being used on an “industrial scale” to deceive victims and extort “significant sums of money” from them. There is evidence that the fraud is being carried out by foreign nationals who are forced to commit crimes under the threat of torture.
The report emphasizes that due to the cruel treatment of victims, this criminal activity goes beyond economic fraud and constitutes a serious violation of human rights.
As a result, both governments have imposed joint sanctions against several individuals and organizations allegedly involved in these operations. They have also frozen related assets – including a £12 million mansion in North London.
“Fraudsters prey on the most vulnerable by stealing life savings, ruining trust, and devastating lives. We will not tolerate this,” warned Fraud Minister Lord Hanson.
Among those sanctioned following an investigation by the UK Foreign, Commonwealth & Development Office and the US Office of Foreign Assets Control (OFAC) are The Prince Group and its chairman, Chen Zhi.
The Prince Group is a multibillion-pound conglomerate with business interests in Cambodia and beyond. The company owns casinos and residential complexes that are being used as scam centers, maintaining connections to these operations through corporate intermediaries.
In addition to a £12 million mansion, Chen Zhi’s assets include a £100 million office building on Fenchurch Street in the City of London and 17 apartments on New Oxford Street and in Nine Elms, South London.
Also mentioned in the investigation are Jin Bei Group, Golden Fortune Resorts World Ltd, and Byex Exchange, all of which have links to The Prince Group.
Foreign Secretary Yvette Cooper stated: “The masterminds behind these horrific scam centres are ruining the lives of vulnerable people and buying up London homes to store their money.
“Together with our US allies, we are taking decisive action to combat the growing transnational threat posed by this network – upholding human rights, protecting British nationals and keeping dirty money off our streets.”
Gangs are using a variety of methods to attract foreign nationals, including romance scams and fake job advertisements. In addition, demonstrating a high level of organization, they resort to fraudulent cryptocurrency investments to exploit vulnerable groups to the fullest extent. Casinos, along with other seemingly legitimate businesses and online gambling platforms, are also used as part of a broader network for laundering criminal proceeds.
The threat of organized crime in Southeast Asia has long loomed over the gambling industry. In May, the authorities of the Isle of Man warned that they have “limited appetite” for doing business with gambling companies connected to East or Southeast Asia due to the risk of “criminal infiltration.”
And in early October, the country of Timor-Leste revoked all gaming licenses, citing security concerns.
Concerns were heightened following a report by the United Nations Office on Drugs and Crime (UNODC), which showed an increase in criminal activity in the special administrative region of Oecussi in Timor-Leste, where ten people were arrested on suspicion of illegal gambling and computer fraud.
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