Scam compound operator indicted for fraud and more

Prince Holding Group chair indicted in forced labor and crypto scheme

In a sweeping indictment unsealed by the U.S. Department of Justice (DOJ), Chen Zhi, the 37-year-old chair of Cambodia-based Prince Holding Group, is accused of masterminding one of the largest forced labor and cryptocurrency fraud operations in modern history.

According to federal prosecutors, Chen — also known as Vincent — ran a network of compounds in Cambodia where trafficked workers were imprisoned and forced to carry out online fraud schemes. Victims were lured into pig butchering schemes, elaborate crypto investment cons that have cost individuals and institutions billions globally.

The indictment paints a chilling picture: Workers were beaten, tortured and held under constant surveillance. Chen allegedly directed the abuse and maintained detailed records of the operations. The scheme’s proceeds were laundered through a web of crypto wallets, gambling platforms and mining operations, with a staggering 127,271 bitcoin (worth approximately $15 billion) now subject to civil forfeiture — the largest in DOJ history.

The Prince Group’s reach extended across more than 30 countries, with a U.S.-based network in Brooklyn, New York, helping to launder funds from more than 250 victims. Chen, a dual U.K. and Cambodian national, remains at large. If convicted, he faces up to 40 years in prison.

From billionaire to behind bars: René Benko jailed for fraud

Austrian ex-property tycoon René Benko has been sentenced to two years in prison, with 16 months suspended, after being found guilty of fraud by a court in Innsbruck, Austria. The case centered on Benko’s attempt to conceal assets during his personal bankruptcy proceedings. He was accused of transferring 300,000 euros to relatives and making unjustified advance payments of 360,000 euros for a luxury property rental, which prosecutors argued were efforts to shield assets from creditors.

Benko, former billionaire and founder of the now-insolvent Signa Group, was a central figure in one of Austria’s largest corporate collapses. His empire included high-profile assets such as Berlin’s KaDeWe department store and New York’s Chrysler Building. The court found that Benko had acted with intent to deceive. He’s denied wrongdoing and plans to appeal the verdict.

The ruling is part of a broader investigation into the collapse of Signa Group, which left billions in unpaid debts and has triggered legal proceedings in multiple countries.

Discord confirms potential leak of 70,000 users’ ID photos

Messaging platform Discord has revealed that approximately 70,000 users may have had their official identification photos exposed following a cyberattack on a third-party age verification provider. Although Discord wasn’t breached, the compromised system had access to sensitive user data submitted for age verification. The leaked information may include official ID photos, partial credit card details and conversations with Discord’s customer support.

The messaging platform says no passwords, full credit card numbers or general user messages were affected. Discord has contacted all impacted users, revoked the third-party’s access and is working with law enforcement. The company denied claims that the breach was larger than reported, calling such allegations part of an extortion attempt.

“Real Housewives” star Wendy Osefo arrested on 16 fraud charges

Wendy Osefo, a sociology professor at Wesleyan University and cast member of “The Real Housewives of Potomac,” was arrested in Maryland alongside her husband, Eddie, on 16 counts of insurance fraud. The charges include seven felony counts of insurance fraud, eight misdemeanor counts of conspiracy to commit insurance fraud and one misdemeanor count of making a false statement to an officer.

The case stems from a reported home burglary in April 2024, for which the couple claimed nearly $500,000 in insurance. However, investigators later found many of the allegedly stolen items — including a gold diamond ring — had resurfaced or been returned to stores years earlier. A search of the reality stars’ home uncovered at least 15 items previously reported stolen.

Court documents revealed that the couple was in substantial debt, despite public claims of financial success on their reality show. Osefo was released on a $50,000 bond.

Crystal Zuzek is an assistant editor of Fraud Magazine. Contact her at czuzek@ACFE.com.