Friend
Professional
- Messages
- 2,653
- Reaction score
- 850
- Points
- 113
The shocking truth behind online scams.
On September 12, 2024, the U.S. Department of the Treasury, through the Office of Foreign Assets Control (OFAC), announced the imposition of sanctions against Cambodian businessman Lee Jong Phat and his companies for involvement in serious human rights abuses. In particular, Lee and his corporation, L.Y.P. Group Co., LTD, are accused of using forced labor in online fraud centers where victims of human trafficking are forced to work in difficult conditions.
OFAC has also sanctioned several hotels in Cambodia, including the Garden City Hotel, Koh Kong Resort and Phnom Penh Hotel, which are under Lee's control. This decision is designed to destroy the infrastructure that supports investment frauds, which have affected thousands of people, including US citizens.
Acting Undersecretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith said the department will continue to crack down on criminal networks that run such schemes. According to him, the actions of the Ministry of Finance are aimed at destroying systems that exploit people and deceive gullible investors.
Financial scammers use fake identities to build trust with victims and lure them into investing in virtual currencies or foreign currency schemes. These operations, organized mainly by criminal groups in South-East Asia, resulted in significant financial losses. In 2023, the damage from investment fraud increased by 38%, reaching $4.57 billion. Of particular concern are crypto-related scams, which have increased by 53% over the same period.
Victims of fraud are often victims of trafficking and are subjected to physical and psychological violence. The U.S. State Department's 2024 Trafficking in Persons Report notes that forced labor in online fraud centers is widespread in Cambodia, especially in the cities of O'Smach and Koh Kong. In these places, the authorities fail to cope with law enforcement, which is exacerbated by corruption and political interest.
The O-Smach Resort complex, owned by Lee Yong Fat, has been the subject of police investigations for several years. People were lured there under the guise of providing work, and then deprived of means of communication and forced to participate in fraudulent schemes. Some victims died trying to escape. In 2022 and 2024, local authorities carried out several rescue operations, freeing dozens of people of different nationalities.
OFAC sanctions imply the blocking of the assets of all individuals and companies involved in human rights violations. Any of their property interests in the United States or under the control of American citizens fall under the restrictions. Sanctions violators risk civil or criminal penalties.
The United States continues to use sanctions as a tool of pressure to achieve changes in the behavior of those involved in crimes against humanity and corruption.
Source
On September 12, 2024, the U.S. Department of the Treasury, through the Office of Foreign Assets Control (OFAC), announced the imposition of sanctions against Cambodian businessman Lee Jong Phat and his companies for involvement in serious human rights abuses. In particular, Lee and his corporation, L.Y.P. Group Co., LTD, are accused of using forced labor in online fraud centers where victims of human trafficking are forced to work in difficult conditions.
OFAC has also sanctioned several hotels in Cambodia, including the Garden City Hotel, Koh Kong Resort and Phnom Penh Hotel, which are under Lee's control. This decision is designed to destroy the infrastructure that supports investment frauds, which have affected thousands of people, including US citizens.
Acting Undersecretary of the Treasury for Terrorism and Financial Intelligence Bradley T. Smith said the department will continue to crack down on criminal networks that run such schemes. According to him, the actions of the Ministry of Finance are aimed at destroying systems that exploit people and deceive gullible investors.
Financial scammers use fake identities to build trust with victims and lure them into investing in virtual currencies or foreign currency schemes. These operations, organized mainly by criminal groups in South-East Asia, resulted in significant financial losses. In 2023, the damage from investment fraud increased by 38%, reaching $4.57 billion. Of particular concern are crypto-related scams, which have increased by 53% over the same period.
Victims of fraud are often victims of trafficking and are subjected to physical and psychological violence. The U.S. State Department's 2024 Trafficking in Persons Report notes that forced labor in online fraud centers is widespread in Cambodia, especially in the cities of O'Smach and Koh Kong. In these places, the authorities fail to cope with law enforcement, which is exacerbated by corruption and political interest.
The O-Smach Resort complex, owned by Lee Yong Fat, has been the subject of police investigations for several years. People were lured there under the guise of providing work, and then deprived of means of communication and forced to participate in fraudulent schemes. Some victims died trying to escape. In 2022 and 2024, local authorities carried out several rescue operations, freeing dozens of people of different nationalities.
OFAC sanctions imply the blocking of the assets of all individuals and companies involved in human rights violations. Any of their property interests in the United States or under the control of American citizens fall under the restrictions. Sanctions violators risk civil or criminal penalties.
The United States continues to use sanctions as a tool of pressure to achieve changes in the behavior of those involved in crimes against humanity and corruption.
Source
