PAOCC raids Hongsheng Gaming Technology in Bamban, Tarlac

Operatives of the Criminal Investigation and Detection Group-Central Luzon raided Hongsheng Gaming Technology Inc. in Anupul village, Bamban town, Tarlac province, on Wednesday, February 1, 2023, over an allegedly fraudulent cryptocurrency investment operation¹. The raid was carried out around 5 p.m. under a warrant to search, seize and examine computer data, issued by Judge Maria Roma Flor Ortiz of the Tarlac Regional Trial Court Branch 63 on January 31 of that year¹.

Accounts of how many people were held differ. The CIDG said it arrested a Malaysian national identified as Chai Kiat Chiw and held 800 employees of Hongsheng, which included 350 foreigners and 500 Filipinos¹. Philstar reported up to 851 workers arrested, including 351 foreigners, among them Chai Kiat Chiw and 350 other foreigners, plus 500 Filipinos². The CIDG said three other company officers, Yu Zheng Can, Zhiyang Huang and Thelma Larnan, remained at large¹; Philstar named the third as Thelma Barrogo Laman².

The warrant cited alleged violations of the Securities Regulations Code of the Philippines' provisions on fraudulent transactions and of the Cybercrime Prevention Act of 2012¹. Philstar reported that charges for violating Republic Act 8799, the Securities Regulation Code, in relation to RA 10175, the Cybercrime Prevention Act of 2012, and human trafficking were being prepared against the suspects². The CIDG said Hongsheng "allegedly operates fraudulent cryptocurrency investment scams shielded under the cloak of a permitted or licensed offshore gaming operation"¹.

The municipal council of Bamban allowed Hongsheng to establish and operate a "business of amusement, entertainment, recreation and gaming activities" in the town, "provided that the gaming activities conducted therein shall be exclusive only to their members and their community"¹. The council said Hongsheng stated it was registered with the Securities and Exchange Commission "although no copy of its registration was provided"¹.

The raid became the starting point of a wider investigation. The Presidential Anti-Organized Crime Commission later received information that a Vietnamese had escaped from a POGO called Zun Yuan Technology Inc., located in the same compound as Hongsheng, and wanted to be rescued³. Documents found in the compound named Bamban mayor Alice Guo, who had facilitated Hongsheng's application for local permits⁴. Guo said she owned 50 percent of Baofu Land Development Inc., which leased the property to Hongsheng, before selling her shares when she entered politics in 2022⁴.

What it means for players

The February 2023 raid did not target bettors. It targeted a company that held a POGO license but was accused of running an investment fraud behind it¹. For anyone gambling in the Philippines, the case illustrates the distinction regulators drew between licensed offshore gaming and operations using a license as cover: the CIDG described the alleged scam as shielded by a permitted or licensed offshore gaming operation¹. The Philippines' offshore gaming sector has since been the subject of a ban, and the licensing framework has changed, with POGO licenses later renamed Internet Gaming Licenses³. Players dealing with any operator should note that a license listing is not by itself evidence that the underlying business is what it claims to be; Pagcor had already canceled Hongsheng's license in October 2022, months before the raid¹. For background on the sector and its closure, see The Philippines' Ban on Offshore Gaming (POGOs) and Crackdowns on Offshore Online Gambling Hubs in Asia. For reporting routes and warning signs, see Gambling Scams and Safety in Asia.

What happens next

Eight foreigners and one Filipino were charged after inquest proceedings⁶. Senator Sherwin Gatchalian filed Senate Resolution No. 977 seeking an inquiry into human trafficking, serious illegal detention, and physical abuse and torture allegations against the Tarlac POGO⁶. Alice Guo and her siblings left the Philippines in late July 2024 after a Senate arrest warrant for contempt, and were later caught in Indonesia³. Guo is detained at the Pasig City Female Dormitory over non-bailable human trafficking charges³.