Cambodia extradites Chinese ringleader of global online extortion firm to China for trial

Beijing, Jan 8 (PTI) A Chinese tycoon accused of operating a major transnational criminal network defrauding people through telecom fraud has been extradited from Cambodia to China to face trial, authorities said.

Chen Zhi, the ringleader of a major cross-border gambling and fraud criminal syndicate, has been extradited from Cambodia to China, the Ministry of Public Security here said.

Investigators said Chen's syndicate is suspected of multiple crimes, including operating illegal gambling operations, committing fraud, engaging in illegal business activities and concealing criminal proceeds.

Chen has been placed under compulsory measures, and the case remains under further investigation.

A ministry official told the state-run media here that public security authorities will soon issue a wanted notice for the first batch of core members of Chen's syndicate and vowed to bring all fugitives to justice.

At the request of Chinese authorities, Cambodia arrested three Chinese nationals – including Chen, the founder of Prince Holding Group – and transferred them to China on Tuesday.

Before his extradition, Phnom Penh stripped Chen of his Cambodian nationality, which he acquired years ago as China's law does not permit dual citizenship.

Chen was accused of running a vast online scam network, which indulged in stealing tens of billions of dollars through online extortion worldwide, including in India.

Chinese officials say that Chen is one of the most dreaded criminals who ran a transnational criminal enterprise called Prince Holding Group, which trafficked thousands of workers from China and other countries and forcibly used them to defraud victims worldwide.

His company enticed scores of workers from different countries offering a part-time job then forced them into run scams extorting money using pressure tactics.   His extradition was part of China’s efforts to identify and catch thousands of its nationals from different countries who were running online telecom frauds, the official said.

Chen is accused of multiple crimes, including opening a casino, fraud, illegal operations and concealing criminal proceeds, the official said.

Chinese police would soon put core members of Chen’s crime ring on a wanted list. The ministry urged any members on the run to “turn themselves in and strive for leniency”.

Commenting on the case, Chinese foreign ministry spokeswoman Mao Ning on Thursday described the fight against online gambling and telecoms fraud as “a shared responsibility of the international community”.

“China has been actively working with Cambodia and other countries for some time to fight cross-border telecoms and online fraud, with notable achievements,” Mao said.

“China is willing to step up law enforcement cooperation with its neighbours, including Cambodia, to protect people’s lives and property safety.” Chen has served as the chairman of Prince Holding Group since 2015, overseeing the operations of dozens of companies – from real estate to financial services – across more than 30 countries.

Following Chen’s arrest, a Cambodian bank he founded had been placed under liquidation, the Hong Kong-based South China Morning Post reported.   Multiple countries have taken action against Chen.

In October, the US charged him with wire fraud conspiracy and money laundering. The US law enforcement also seized about USD 15 billion worth of bitcoin, which it alleged belonged to Chen.

US prosecutors accused Chen and his associates of running camps in Cambodia where people were held against their will and forced to carry out fraud schemes.

He was sanctioned in both the US and Britain. Governments across Asia – including Singapore, South Korea, Hong Kong and Taiwan – have also seized assets or detained individuals related to Chen’s group, the Post reported.

The Chinese Public Security Ministry on Thursday said a total of 258,000 telecom fraud cases were solved last year.

The ministry intercepted 3.6 billion fraudulent phone calls and 3.3 billion fraudulent text messages, and froze 21.707 billion yuan (USD 3.1 million) in fraud-related funds.

In response to the currently difficult situation of telecom and online fraud crimes targeting China from Myanmar and Thailand, more than 7,600 Chinese nationals suspected of involvement in telecom fraud cases have been brought back to China, the ministry said. PTI KJV ZH ZH