Philippine authorities arrest over 160 people over suspected cybercrime operation

MANILA, Philippines (AP) — Philippine authorities have raided a suspected illegal online gambling and cyber scam compound in a central province and arrested more than 160 people, mostly Chinese and Indonesians, who committed internet crimes, officials said Sunday.

Saturday’s raid by more than 100 government agents backed by military intelligence on a resort complex in the city of Lapu-Lapu was part of an ongoing crackdown after President Ferdinand Marcos Jr. in July ordered a ban on widespread — and mostly Chinese-run — online gambling businesses that primarily target customers in China, where illegal gambling is prohibited.

Marcos said at the time that the large-scale illegal gambling operations ignored Philippine laws and violated regulations on a massive scale, as well as other crimes including financial fraud, human trafficking, torture, kidnapping and murder.

The raid at the Tourist Garden Resort, which has 10 buildings with swimming pools, karaoke bars and restaurants, came after the Indonesian embassy in Manila requested the rescue of eight Indonesians who were allegedly forced to work at the online gaming center, the Presidential Commission Against Organized Crime said.

At least 162 foreigners “were found operating three separate scam businesses within the compound,” the commission said without elaborating. Such crimes included fraudulent online romance, gambling and investment schemes that have defrauded victims of large sums of money, Philippine officials said.

The 83 Chinese, 70 Indonesians, six Myanmarese, two Taiwanese and one Malaysian will be flown to Manila, where they will be screened by the Immigration Department and possibly deported, it added.

The owner of the hotel complex has been arrested and could face criminal charges, including for hosting illegally staying foreigners, the commission and immigration officials said.

“We will propose to the authorities to file cases against resort owners who allow their properties to be used by illegal aliens in their secret operations,” Tansingco said. “This will serve as a warning to those who attempt to start illegal online gambling operations.”

Marcos’ decision to ban Chinese-run online gambling companies — there are estimated to be more than 400 in the Philippines and they employ tens of thousands of Chinese and Southeast Asian nationals — was welcomed by Beijing.

This has led to the closure of several sprawling complexes where authorities suspect thousands of Chinese, Vietnamese, Indonesians and others, mainly from Southeast Asia, have been illegally recruited and forced to work under oppressive conditions.

Philippine authorities are also searching for Alice Guo, a ousted mayor of a small town in Tarlac province north of Manila. She reportedly left the country in July after the Philippine Senate arrested her. She failed to show up for public hearings investigating allegations against her, including her alleged ties to a large online gambling complex near city hall.

She is also accused of fraudulently concealing her Chinese nationality to run for a public office reserved for Filipino citizens.

Guo, who is believed to be in hiding in Indonesia, denies any wrongdoing but has been removed from her post by the Ombudsman for serious misconduct. The Ombudsman is an agency that investigates and prosecutes government officials accused of crimes including bribery and corruption.

Philippine senators say the country’s massive online gambling industry has largely been fueled by corruption in government regulators and large bribes to officials.

Jim Gomez, The Associated Press