Alice Guo Linked to Chinese Crime Gangs Running Cryptocurrency Scams in Dating Platforms

October 18, 2024 Philippines Crime & Legal

Investigations reveal that Chinese crime gangs are deeply embedded in the Philippines’ offshore gaming sector. A recent investigation by Rappler has uncovered alarming connections between Alice Guo, a detained former mayor in Tarlac, and a transnational scam enterprise involving cryptocurrency fraud and money laundering across Southeast Asia.

Guo’s business dealings have attracted attention due to her association with key figures linked to organized crime. Her partners include Huang Zhiyang and the couple Zhang Ruijin and Lin Baoying, all of whom are wanted fugitives with extensive criminal backgrounds. These individuals have ties to various illicit operations, including crypto fraud in Hong Kong, scam farms in Cambodia, and money laundering in Singapore.

The Network of Crime

Rappler’s investigation identified at least four persons of interest connected to Guo. Huang Zhiyang, a co-founder of Baofu Land Development Incorporated, has been implicated in multiple congressional investigations. He has also been linked to high-stakes financial scams. Guo’s business association with Huang began when the Philippines became a prime location for scam syndicates displaced from Cambodia and China. This shift occurred during former President Rodrigo Duterte’s administration, which opened the doors to Chinese investments.

Huang’s connections extend beyond Guo, involving a network that spans the Mediterranean, Caribbean, and the United Kingdom. This criminal enterprise is suspected of trafficking victims, defrauding individuals through cryptocurrency scams, and laundering money derived from gambling activities.

Huang Zhiyang was also a shareholder in the Sun Valley Clark Hub Corporation in Pampanga, which has been associated with multiple scams. The Philippine Amusement and Gaming Corporation (PAGCOR) revoked its POGO license in May 2023 after the facility was raided due to reports of human trafficking.

Inside the Cryptocurrency Scam Operations

The operational mechanics of these scams reveal a disturbing picture. Workers in these hubs are often coerced into assuming various false identities to attract victims, primarily through dating sites. They use photos of innocent individuals or models, crafting elaborate personas to manipulate potential victims. Scripts detailing their fabricated lives and activities are prepared in advance, allowing for a more convincing approach.

It was discovered that workers are provided with scripts outlining various personas designed to ensnare victims in cryptocurrency scams. These scams primarily unfold on dating platforms, where the perpetrator uses images from either unsuspecting individuals with public social media profiles or models hired by the operation.

Each worker has access to an Excel sheet filled with potential life stories—covering personal backgrounds or daily routines. In Sun Valley, the selection includes stock photos ranging from mundane images like a McFlurry to more engaging visuals, such as a financial literacy book, all ready to be sent to victims who inquire about the scammer’s activities.

Alice Guo’s Connection to Huang Zhiyang

Huang Zhiyang co-founded Baofu Land Development Incorporated alongside Guo on May 3, 2019. This company served as the lessor for two POGOs that were targeted in raids during 2023 and 2024, following the escape of trafficked and tortured victims who filed complaints.

Shocking Videos of Tortured POGO Workers Shown in House Inquiry

In the case of Guo, she claimed that her dealings with Huang were limited to supplying pork for his restaurants in Clark, Pampanga. During a May 22 session at the Senate, Guo said back then about Huang, “He has many restaurants, I was selling him pork. Our transactions were okay, he was kind.” She also remembered that he always brought her gifts from his travels.

However, evidence suggests that Huang’s frequent travel and multiple passports were indicative of a broader criminal agenda. Huang, a native of Fujian, China, holds citizenships from several countries, including St. Kitts and Nevis, a known tax haven, and Cyprus, notorious for its lenient immigration policies.

Legal Consequences and Investigations

Guo’s connections have drawn the scrutiny of international agencies. All individuals linked to her, including Huang and Dingkai Wang, face serious allegations involving money laundering and other illegal activities. Wang, a naturalized Cambodian, is also connected to fraud in Cambodia and Hong Kong.

Despite the evidence, questions remain about the legal proceedings against these individuals. Neither Huang nor Wang has been charged in connection with the trafficking and cybercrime indictments issued in May 2023. Guo, on the other hand, faces non-bailable charges of human trafficking, while her associates remain at large.

The Philippine government is working to improve data-sharing practices with foreign governments to track these fugitives. Many of these individuals have been able to obtain visas and enter the Philippines without any indication of their criminal backgrounds, raising concerns about the country’s immigration policies.

UNODC Report Highlights Casino Syndicates in the Philippines

The Philippines has become a favored refuge for scam syndicates escaping intensified crackdowns in China and Cambodia. In March 2024, the PAOCC conducted a raid on the Bamban POGO Zun Yuan, uncovering six Chinese fugitives among the 201 Chinese nationals employed there.

These individuals were able to secure visas to the Philippines because, as noted by the Bureau of Immigration, the application process lacked any checks on their criminal histories.

The United Nations Office on Drugs and Crime (UNODC) has highlighted the Philippines as a hotspot for criminal syndicates seeking refuge from crackdowns in their home countries. The country’s lack of a stringent regulatory framework for online gambling has made it an attractive destination for these groups. Reports indicate that the lack of enforcement in the gaming sector has facilitated the operations of various syndicates, which have increasingly relied on illicit activities.

According to a January 2024 report by the UNODC, casino syndicates have “infiltrated” nations such as the Philippines due to the lack of a robust and enforceable regulatory framework for casino management and oversight.

The connections between POGOs and the illegal drug trade further complicate the situation. Representative Ace Barbers, chairman of the House quad committee, noted that many POGOs are funded by proceeds from drug sales. He emphasized that these funds have been used to corrupt government officials, allowing criminals to operate with relative impunity.