Scammers ran a huge scheme from the Isle of Man, tricking people in China out of millions of dollars, according to a BBC World Service investigation.
The scam was operated from the Seaview Hotel in Douglas, where many Chinese workers were seen working on computers with fast internet.
The hotel even had a special cooking hob delivered for the workers. The scheme, known as “pig-butchering,” involved building trust with victims before cheating them out of their money.
Between January 2022 and January 2023, scammers used the Isle of Man as a base, moving from the hotel to old bank offices in Douglas.
The BBC found that these scammers used chat apps like QQ to lure Chinese investors with fake investment opportunities, pretending to be experts and fellow investors.
The scammers controlled the investment platforms and took the victims’ money, with losses estimated at over $5 million.
The main person behind the scam was Liang Lingfei, also known as Bill Morgan, who set up a trust to manage the operations.
The scam was sophisticated and involved a large, ambitious project to build a fancy office complex on the Isle of Man, but this is now on hold.
In April, police raided the offices and made several arrests related to this fraud. The Isle of Man’s gambling regulator has also taken action against the companies involved.
The BBC’s investigation reveals how these scammers exploited legal loopholes and operated from a place with low oversight.
https://www.bbc.com/news/articles/cz6x1ql1yelo