Douglas, Isle of Man — A recent BBC World Service investigation has uncovered that a seaside hotel and former bank offices on the Isle of Man were central to a multi-million dollar scam targeting victims in China. The elaborate scheme, which operated between January 2022 and January 2023, was conducted from the Seaview Hotel in Douglas and involved a technique known as "pig-butchering."
The scam, which has been detailed through Chinese court documents and insider accounts, relied on an extensive setup in the Isle of Man. At the heart of the operation were the dining room and lounge at the Seaview Hotel, which were transformed into makeshift offices. Dozens of Chinese workers operated computers connected to high-speed broadband, while a specialist wok hob was installed in the hotel’s kitchen.
The method, called "pig-butchering," involves gaining the victim’s trust before exploiting it, making the scam highly effective. This operation, revealed after nearly a year of investigation, saw significant funds siphoned off from unsuspecting Chinese investors through sophisticated online tactics.
The BBC's investigation highlights that in late 2021, around 100 individuals were relocated to the Isle of Man from the Philippines, where they had previously been employed by a similar fraudulent organization. These workers were brought in by a company referred to in Chinese court documents as "MIC," standing for Manx Internet Commerce. MIC was part of a network of companies owned by the same individual, including King Gaming Ltd, an online casino exploiting low gambling taxes on the Isle of Man to target Chinese customers.
The workers, who were initially stationed at the Seaview Hotel, later moved to former bank offices in Douglas. Here, they engaged in various scam operations, celebrating successes in defrauding victims located thousands of miles away. Court records from China reveal that six individuals, who worked for MIC, were convicted of perpetrating investment scams against Chinese citizens. The court documented that at least 38.87 million renminbi (approximately $5.3 million) was stolen from at least 12 victims through these deceitful practices.
The BBC’s investigation also uncovered that MIC's sole beneficiary, known as Bill Morgan or Liang Lingfei, was deeply involved in the operation. Liang, who was also the co-founder of the scam organization in the Philippines, obtained an Isle of Man investment visa and was present at multiple company events. His wife owns property in Ballasalla, near the island’s airport.
The Isle of Man operation had ambitious plans, including a state-of-the-art "parkland campus" headquarters envisioned to be the largest single private investment on the island. The development, however, is now on indefinite hold following police raids and the appointment of receivers to manage the companies involved. The Isle of Man’s gambling regulator has also revoked the licenses of MIC’s affiliate companies.
In response to the investigation, Isle of Man police conducted raids in April, arresting several individuals and initiating a broader fraud and money laundering inquiry. The BBC has reached out to the involved companies and their representatives but has received no responses. The Seaview Hotel has also been contacted, with no indication of awareness regarding the illegal activities conducted on the premises.
This case underscores the growing trend of international scammers exploiting legal loopholes and jurisdictions with limited oversight. According to Masood Karimipour of the UN Office on Drugs and Crime, the fight against such scams is increasingly challenging, with organized crime exploiting perceived legal gaps and weak regulatory environments.
The investigation into the Isle of Man’s role in this global scam continues, highlighting the need for robust international cooperation to combat sophisticated fraudulent operations.
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