China scam run from Isle of Man
A seaside hotel and former bank offices on the Isle of Man have been implicated in a scam that defrauded victims in China of millions of dollars, according to a BBC World Service investigation.
The Seaview Hotel in Douglas reportedly had its dining room and lounge filled with numerous Chinese workers on computers connected to high-speed internet. Additionally, a specialized wok hob was installed in the hotel’s kitchen.
The scam, which occurred between January 2022 and January 2023 as detailed in Chinese court documents, utilized a method known as “pig-butchering.” This term refers to the practice of “fattening the pig” by gaining the victim’s trust to ensure the scam’s success.
The BBC spent almost a year uncovering how the investment scam was orchestrated from this British Crown dependency with an independent government.
We also discovered further information, including the scammers’ ambitions to develop a high-tech office complex with a view of the Irish Sea.
In addition to reviewing court documents, we accessed leaked papers and spoke with company insiders.
One former employee, Jordan [a pseudonym], revealed he was unaware of the fraudulent nature of his work when he first arrived on the Isle of Man. He initially felt fortunate to have secured what he believed to be a stable administrative position.
He did notice, however, that his new employer seemed quite secretive – for example, he and his colleagues were forbidden from taking photos at company social events. What he says he didn’t realize was that many of his Chinese colleagues were actually scam artists.
In late 2021, nearly 100 people were transferred to the Isle of Man to work for a company that Chinese court documents refer to as “MIC”. They had come from the Philippines where they had worked for another scamming firm. The BBC has discovered that MIC stands for Manx Internet Commerce.
On the Isle of Man, MIC was part of a group of associated companies – all with the same owner.
An online casino, run by King Gaming Ltd, was the most prominent. In mainland China, gambling is illegal. Setting up halfway around the world meant the group’s founders could target Chinese customers, but also take advantage of the Isle of Man’s low gambling taxes.
