How an Accused Scam Kingpin Built an Empire From Cambodia to London
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How an Accused Scam Kingpin Built an Empire From Cambodia to London
Source: Prince Holding Group
Three years ago, Cambodian Prime Minister Hun Sen gifted locally crafted luxury wristwatches to other world leaders at the time, including Joe Biden during a regional summit in Phnom Penh.
Each Lotus Tourbillon timepiece was emblazoned with 25 jewels, with the crown-shaped logo of Cambodian conglomerate Prince Holding Group etched into its components. After accepting the watch, Biden transferred it to the US National Archives along with items with a combined value of $1,790.
The gifts — designed and assembled by a watchmaking school started by Prince Group — show how the enterprise and its China-born chairman Chen Zhi entered into the upper echelons of global influence. The 37-year-old worked meticulously to cultivate an image of legitimacy and even philanthropy and built connections with important people and organizations. He accumulated properties ranging from a London office building to luxury apartments in Singapore and Taiwan, and oversaw a business empire that stretched from the beaches of Palau to the financial hub of Hong Kong.
That reach is now rapidly unraveling, after US and UK authorities in mid-October accused Chen and his network of running a transnational criminal ring that operated scam centers using forced labor and laundered billions of dollars in stolen funds around the world. The US Treasury Department imposed sanctions on 146 entities and individuals within the Prince Group, including Chen.
The revelations, which emerged when authorities indicted Chen and seized $15 billion in Bitcoin, shed light on how he and his associates operated largely unhindered for more than a decade. Local media outlets in Singapore — where he established a family office and spent time — and Cambodia also lauded his business achievements. Even when reports of the group’s alleged ties to organized crime began to surface last year, various companies continued to work with Chen and his network.
Prince Group “almost certainly thrived more fully because of the openness and ability to move capital in and out of places like Hong Kong and Singapore,” said Jacob Sims, a visiting fellow at Harvard University’s Asia Center who researches transnational crime. “The international community’s response has verged on if not crossed over into complicity.”
The Cambodian conglomerate has denied accusations of money laundering and other illegal activities in statements that have since been removed from its website. Chen remains at large and couldn’t be reached. Prince Group didn’t respond to an emailed request for comment.
Singapore police said on Friday that they mounted an enforcement operation against Chen and his associates relating to money laundering and forgery. The police seized more than S$150 million ($115 million) in assets and froze items including a yacht, 11 cars and multiple bottles of liquor.
Chen was born in 1987 in Fujian, a province in southeastern China. The now-removed website of his Singapore family office described him as a “young business prodigy” who early on set up gaming centers in the provincial capital of Fuzhou. He subsequently renounced his Chinese citizenship and now holds passports from Cyprus and Vanuatu as well as Cambodia, the US Treasury Department says.
He began investing in real estate in the poor Southeast Asian country in 2011, and later set up Prince Group, whose interests also span entertainment, finance and even an airline. Over time, he became an adviser to Hun Sen, Cambodia’s longtime leader, as well as the politician’s son and successor Hun Manet, who is now prime minister.
At the Association of Southeast Asian Nations Summit in Cambodia’s capital in November 2022, wristwatches crafted by Prince’s watchmaking school were also handed to other dignitaries including Canada’s then-Prime Minister Justin Trudeau and Australian Prime Minister Anthony Albanese. Trudeau is recorded as forfeiting his timepiece to the Crown, while Albanese also gave up the gift.
Hun Sen shows the tourbillon watch crafted by Prince’s watchmaking school during the Asean Summit in Phnom Penh in 2022.Photographer: Tang Chhin Sothy/AFP/Getty ImagesUS prosecutors accused Chen and his associates of using “their political influence to protect the scam operations from law enforcement in multiple countries.”
In one case, his co-conspirator allegedly promised to “take care of” a Chinese public security official’s son in exchange for the official offering to get Prince Group associates “off the hook.” A senior unnamed foreign government official who received luxury watches worth millions of dollars from Chen also helped him to obtain a diplomatic passport, which he used to travel to the US in April 2023, according to the indictment.
Chen laid down roots in Singapore, a country that has long prided itself for a zero tolerance of corruption and crime. In 2017, he splurged nearly S$40 million on luxury properties in the city-state, including a S$17 million penthouse at Gramercy Park, near the Orchard Road shopping belt.
Read more: Singapore Ties to Multibillion Dollar Scam Case in Spotlight
A S$16.2 million suite at a designer condo called Le Nouvel Ardmore became a key center of activity, according to two people familiar with Chen and his associates. The apartment, which includes a wine cellar and panoramic city views, was converted into a clubhouse for business dealings, with dedicated areas for karaoke and smoking cigars, the people said, asking for anonymity to talk candidly about his affairs.
Gramercy Park in Singapore.Photographer: Nicky Loh/BloombergChen traveled around Singapore in luxury cars, including a black Mercedes-Maybach with the vanity plate “5555.” The group held frequent parties, including at NONNI II, a 53 meter (174 foot) luxury yacht that was often parked at the Sentosa resort island, one of the people said.
In 2018, Chen’s family office, DW Capital Holdings Pte, was set up in Singapore. It claimed to manage more than S$60 million of assets. Over time, he tapped key lieutenant Karen Chen Xiuling as DW Capital’s chief financial officer — one of three Singapore citizens who would eventually be targeted by US sanctions due to their association with him. Karen Chen didn’t respond to requests for comment.
Chen and his associates also set up a firm in Singapore called Skyline Investment Management that made car loans.
In a suburban neighborhood, Chen-controlled firms opened a co-working space that hosted the Mexican ambassador for a tequila tasting event, and a warehouse that stored tea, whisky and cigars which got duty exemptions from local authorities.
As recently as the day the US charges went public, the family office advertised for a personal assistant role that entailed, among other things, buying groceries and shuttling children to and from school, with pay of as much as S$5,500 a month. Chen is married with three children who have lived in the city-state, one of the people said.
Hong Kong, London
Chen has assets in other major locations too. In London, UK authorities froze assets as part of the crackdown, locking Chen and his network out of the financial system. They included a £100 million ($132 million) office building at Fenchurch Street in the heart of the old financial district, along with a £12 million mansion and 17 flats on New Oxford Street and in Nine Elms in south London.
In Taiwan, the group spent about NT$3.8 billion ($124 million) buying luxury properties in Taipei from April to November 2019, according to transaction records.
In Hong Kong, Chen and his group control more than $300 million of assets from public company stakes to property in one of the city’s busiest shopping districts, according to data compiled by Bloomberg based on regulatory filings.
Chen Zhi's Global Empire
Alleged Cambodia-based criminal syndicate Prince Group invested widely
Sources: US Department of the Treasury; UK Foreign, Commonwealth & Development Office
Note: List is not exhaustive
He is the controlling shareholder of two listed companies trading on the Hong Kong stock exchange. Both firms — Geotech Holdings Ltd., a construction engineering service firm, and Khoon Group Ltd., a mechanical and electrical service provider based in Singapore — are on the sanctions list released by US authorities.
The two stakes are worth about $14 million combined, Bloomberg-compiled data show. Both Geotech and Khoon Group said in statements on Oct. 15 that they are “actively seeking legal advice in relation to the sanctions” and monitoring the situation. A director resigned from Khoon Group’s board on Oct. 23 and the firm’s auditor said the next day it would not seek re-appointment.
Chen’s empire even reached the remote island nation of Palau, where US authorities allege Prince worked with “known organized crime facilitators” to lease an island and establish resorts.
‘Plain Sight’
“Prince Group and Chen Zhi have been a known quantity for many years,” said Morgan Stark, Hong Kong-based Asia head of S-RM Intelligence & Risk Consulting Ltd. That begs the question how the group was able to “operate in plain sight” over that time, he said.
Singapore police said they had received intelligence last year of suspicious transactions and engaged foreign counterparts for assistance. But it was the additional information from the US and UK statements on Oct. 14 that prompted their latest action.
The Monetary Authority of Singapore, which is working with local police, said financial institutions had filed suspicious transaction records “early on.” Some of them had closed accounts they found dubious, which “averted larger sums from being held in our financial sector,” the regulator said on Friday.
Besides Singapore, other authorities in Asia are now probing Chen and his network.
The Taipei District Prosecutors Office said it learned of the matter through media reports and immediately opened a case. Hong Kong police said they are gathering intelligence to combat fraud, without providing specifics.
A spokesman for Cambodia’s government declined to comment on the case, referring instead to recent comments by the country’s central bank governor, Chea Serey, who spoke more broadly about fraud compounds at a Bloomberg forum on Oct. 27. She said Cambodia can’t just be “summarized as scam centers,” and such a notion is damaging to the country.
Ream City
It was in Cambodia where an ambitious plan to transform the coastal city of Sihanoukville catapulted Chen’s profile yet higher — even as questions about his enterprises began to swirl. A unit of the group, Canopy Sands Development Co., engaged Singapore companies to work on the $16 billion project, called Ream City.
Sihanoukville in April.Photographer: Tang Chhin Sothy/AFP/Getty ImagesBut cracks were starting to appear in Prince’s image. In response to a Radio Free Asia article in February 2024 pointing to red flags about the group, it hit back, including hiring Singapore law firm Duane Morris & Selvam LLP as a legal adviser. An employee at the firm said it wasn’t representing Prince anymore and declined to comment further.
Still, companies looking to expand in Cambodia turned to Prince, especially those seeking business in the 934 hectare (2,308 acre) project, now renamed the Bay of Lights.
The Ascott Ltd., a lodging unit of Singapore’s CapitaLand Group Pte, announced in April 2024 a “groundbreaking partnership with Canopy Sands” to manage two properties, including a beachside camping-style resort whose listing it removed after the US sanctions were imposed. Radisson Hotel Group announced plans for a 176-key hotel in the Bay of Lights as recently as September.
Ascott said it was appointed by Canopy Sands to provide hospitality management services and doesn’t hold any ownership interest in the two properties. It has terminated the contracts following the recent developments, a spokesperson said. (Canopy Sands was among the dozens of Chen-linked companies put on Treasury’s sanctions list.)
Radisson didn’t reply to emailed requests for comment.
“From a due diligence standpoint there’s no really good excuse to not have had Prince on your radar,” said Harvard’s Sims, referring to businesses that worked with the group. “This does expose the reality that companies do largely around the world rely on governments to de-risk for them.”