The court in the Makati district of the Philippines ruled that the 1.89 billion pesos in assets seized during the 2023 government raid on the "Colorful and Leap Group Co." (a subsidiary of CGC Technologies Inc.) in the Clark Freeport Zone, Pampanga Province, are legally confiscated and become state property. This case has become an important milestone in the Philippines' recent efforts to combat illegal offshore gambling (POGO) and transnational human trafficking.
This large-scale law enforcement operation was led by the Anti-Money Laundering Council (AMLC), spearheaded by the Presidential Anti-Organized Crime Commission (PAOCC), and jointly executed by the Philippine National Police Anti-Cybercrime Group (PNP-ACG), the Department of Justice, the Department of Social Welfare, and other agencies. According to investigations, the company is suspected of using legitimate gambling operations as a cover to extensively engage in online fraud and transnational human trafficking.
The court's decision noted that the seized assets included various foreign currencies such as US dollars, Chinese yuan, Hong Kong dollars, Thai baht, Vietnamese dong, and Cambodian riel, totaling approximately 1.89 billion pesos. The funds were originally stored in multiple cash vaults and were determined to be directly related to illegal operations. Despite the defense's denial of these funds being related to criminal activities and questioning the court's jurisdiction, the judge ultimately adopted the prosecution's opinion, ruling that the assets were proceeds of illegal activities and should belong to the national treasury.
Law enforcement officers conducted the raid on the park based on six search warrants and one electronic data seizure order issued by the Malolos Regional Court, rescuing 1,137 foreign nationals and 129 Filipino citizens. Many victims reported being deceived into coming to the Philippines and then forced to participate in "pig-butchering" romance scams and fake cryptocurrency investments.
The arrested suspects include HONG LI JI (Jason), HE FENG (Ajun), TAN YONG (Dolly), ZHANG SUO HUA (Hao Yun), IFANDI (Ace), FENDY (Leon), ZHAO JIANG MING (Shuke), and LEE SWEE WAH (Ken), among other foreign nationals, all charged with multiple serious offenses under the Expanded Anti-Trafficking in Persons Act (RA 10364) and the Cybercrime Prevention Act (RA 10175).
Meanwhile, the Clark Development Corporation (CDC) also announced the immediate closure of eight office buildings and one warehouse within the involved park and the suspension of all operational permits and tax privileges for the company. CDC President Agnes Devanadera emphasized that illegal activities will not be tolerated in the Freeport Zone and that a comprehensive assessment of the future legal uses of the involved sites will be conducted to promote legitimate economic development.
This case not only reflects the Philippine government's firm stance on regulating the POGO industry and combating transnational crime but also sets a precedent for cleaning up illegal operations in the Freeport Zone. Officials stated that follow-up investigations will continue to trace the international financial flows and organizational networks possibly involved with the CGC Group, further expanding the scope of the crackdown.
