Seaside Hotel on the Isle of Man Used in $5.3M Chinese Fraud
In a shocking revelation, an investigation by the BBC World Service has uncovered that a seaside hotel and former bank offices on the Isle of Man were used as the base for a sophisticated scam operation that defrauded Chinese victims out of millions of dollars.
The Seaview Hotel in Douglas, once a peaceful retreat, was transformed into a bustling hub for over 100 Chinese workers operating the scam. These workers, who had been transferred from the Philippines, were part of a company known as “MIC” (Manx Internet Commerce). The group ran an elaborate investment scam from January 2022 to January 2023, using a technique dubbed “pig-butchering,” which involved gaining victims’ trust before siphoning off their funds.
MIC and its affiliate companies, including an online casino run by King Gaming Ltd, exploited the Isle of Man’s low gambling taxes to target Chinese customers. The scam involved luring victims into fake investment schemes through chat groups on the messaging service QQ. Victims were convinced by scammers posing as investors and “teachers” to invest in platforms controlled and manipulated by the fraudsters.
Court documents from China reveal that at least 12 victims lost over 38.87 million renminbi ($5.3 million) to the scam. Six members of MIC were convicted upon returning to China, although the mastermind, known as Bill Morgan or Liang Lingfei, remains at large.
The ambitious plans of the scam’s leaders included building a luxurious office complex overlooking the Irish Sea, but these dreams were dashed when Isle of Man police raided the former bank offices in April 2024. The gambling regulator has since revoked the licenses of MIC’s affiliates, and the planned development has been indefinitely halted.
This case marks the first known instance of a “pig-butchering” scam operation being set up in a Western country, raising concerns about the rise of global financial fraud networks. Despite repeated attempts, the BBC was unable to contact the companies involved or the key figures behind the scam.
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