Key members of Bai crime syndicate indicted for long-term involvement in large-scale telecom fraud in northern Myanmar

The Shenzhen Municipal People's Procuratorate has recently, upon legal review, formally prosecuted Bai Suocheng (foreign name: Bay Saw Chain), Bai Yingcang (foreign name: Bay Yin Chin) and 19 other key individuals - a total of 21 suspects - involved in the notorious Bai crime syndicate, CCTV News reported on Friday. 

This group had long entrenched itself in Kokang, northern Myanmar, and carried out rampant criminal activities including telecom and online fraud, primarily targeting Chinese citizens, while relying on armed protection, according to the media report. 

In accordance with China's Criminal Law and Criminal Procedure Law, the suspects have been charged with fraud, operating gambling establishments, extortion, intentional homicide, intentional injury, kidnapping, and drug trafficking and manufacturing, among other serious offenses.

The investigation revealed that the Bai syndicate, led by Bai Suocheng and Bai Yingcang, committed multiple serious crimes, including fraud, intentional homicide, intentional injury, kidnapping, extortion, operating gambling operations, organizing illegal border crossings, organizing and forcing prostitution, and drug trafficking and manufacturing. 

These crimes resulted in the deaths of six Chinese citizens, more than 31,000 fraud cases, over 10.6 billion yuan ($1.5 billion) in defrauded funds, over 18 billion yuan in gambling proceeds, and approximately 11 tons of drugs produced or trafficked.

Bai Suocheng, the head of the Bai family, was born in 1949 in Kokang, northern Myanmar. He once served as the chairman of the Kokang region in Shan State, CCTV News said. During his tenure, he appointed a large number of family members and loyal followers to key local government positions, consolidating control over critical departments.

Li Linna, deputy head of the investigation team for the Bai crime syndicate case at the Shenzhen Public Security Bureau, was quoted as saying in the media report that Bai Suocheng ruled with absolute authority. Whether within the Bai family or across the entire Kokang region, Bai Suocheng's word was law. Even after stepping down, his influence remained unmatched.

By the time he stepped down in 2016, Bai Suocheng had already mapped out a clear strategy to expand his family's power. He appointed his eldest son, Bai Yingneng, and second son, Bai Yingcang, to key posts in Kokang, giving them control over local armed forces including the police battalion and militia units.

"Despite being out of office for years," Li added, "Bai Suocheng still held absolute control. Sometimes, a single word from him could determine whether a person lived or died."

Since the Ministry of Public Security (MPS) launched its special campaign to crack down on crimes in northern Myanmar involving Chinese nationals, China and Myanmar have, through law enforcement cooperation and a series of joint operations, apprehended over 57,000 Chinese telecom fraud suspects. The notorious "four families" crime syndicates in Kokang have suffered devastating blows. Under the unified command of the MPS, local public security authorities have advanced the investigations of cases involving these syndicates. Recently, the case against the Bai crime syndicate was officially prosecuted, CCTV News said. 

According to the report, since 2015, the Bai crime syndicate in Kokang, led by Bai Suocheng, has exploited the family's influence in Kokang's political, military, and economic sectors to develop and operate 41 large-scale gambling and fraud zones. 

These zones served dual purposes: on one hand, they attracted numerous fraud and gambling gangs that carried out telecom scams and online gambling targeting Chinese citizens - ranging from fake investment schemes and rebate scams to impersonating law enforcement and customer service personnel; on the other hand, the syndicate recruited or lured Chinese nationals to illegally cross the border and join these illicit operations.

The Bai syndicate also led the establishment of the Kokang entertainment management committee, which issued "promotion licenses" to these gambling-fraud zones, collecting exorbitant illegal profits in the form of rent, per-head fees, and security payments. Notably, the group maintained armed control over these zones, supporting violence by "investors" against low-level fraud workers who disobeyed, failed to meet quotas, or attempted escape - subjecting them to abuse, beatings, and even murder.

Evidence held by the police indicates that the Bai family directly commands an armed force of approximately 2,000 personnel. Among them, Bai Yingcang served as militia battalion commander, directly controlling over 1,500 militiamen. These forces - fully under the Bai family's immediate command and deployment - have become the "entry pass" and "green light" for investors seeking to establish safe havens in northern Myanmar and profit from telecom fraud, according to CCTV News.

"The militia is divided into two groups. One consists of locally recruited personnel whose food, lodging, and weaponry are funded by me - through rent collected from the fraud zones. The other group protects the scam sites; investors pay rent to the property office, which then distributes those fees to them. In other words, the investors are financing these forces," suspect Bai Yingcang was quoted as saying in the media report. 

In November 2023, the MPS tasked Shenzhen police with investigating the Bai syndicate. On December 10, after collecting substantial evidence, police publicly issued wanted notices for Bai Suocheng, Bai Yingcang, and Bai Yinglan. On January 30, 2024, under the China-Myanmar law enforcement and security cooperation mechanism, Myanmar authorities handed over Bai Suocheng and Bai Yingcang to China. So far, 36 key suspects from the Bai syndicate have been brought to justice.

To fully uncover the Bai syndicate's criminal activities against Chinese citizens, Chinese law enforcement, under the bilateral cooperation framework, dispatched task forces to northern Myanmar five times - despite active conflict - to work closely with Myanmar counterparts. 

They uncovered remains of victims, drug-making equipment, and other critical evidence. Meanwhile, over 1,000 officers from Shenzhen were mobilized to over 200 cities across China to interview thousands of fraud victims and gather evidence. Public security forces in Zhoushan, Zhejiang, provided critical support by apprehending and interrogating key suspects and completing the evidence chain.

Li Juanjuan, deputy head of the legal affairs team for the Bai crime syndicate case of Shenzhen Public Security Bureau, was quoted as saying in the CCTV News report that the Bai family leveraged its military and political influence in northern Myanmar's Kokang region to recruit and harbor so-called investors under armed protection. On one side, they provided armed security and venues for telecom fraud; on the other, these investors supplied manpower and technical support. Both parties formed a symbiotic relationship of mutual dependence.

Through violence or coercion, they inflicted severe abuse on low-level telecom fraud personnel, resulting in psychological manipulation and economic exploitation, thereby forming a closed-loop criminal ecosystem, Li said. 

The telecom fraud compounds controlled by the Bai family imposed not only extremely brutal punishments on workers but also operated under a highly systematic framework. From physical abuse and economic exploitation to psychological torment, the compounds had established a comprehensive "disciplinary system," according to CCTV News. 

For low-level fraud operatives, physical punishment and verbal abuse were common, with individuals frequently resold or traded among criminal groups. For technical specialists, those who refused to cooperate in developing new fraud technologies were locked in iron cages or dark isolation rooms, cut off from food and water until they submitted.

For management personnel, if a team failed to meet performance targets, the team leader would be held collectively responsible, subjected to both physical and psychological torture.

"For example, in one compound, we uncovered a site where an organization was forcing women into prostitution. More than 20 women were coerced into sex work, with armed guards stationed outside, making it impossible for them to escape or resist," Li Juanjuan was quoted as saying in the media report. 

The psychological and physical devastation inflicted on these women was evident throughout our case file review - revealing their sense of utter despair and the severe restrictions placed on their freedom, Li said. 

While 36 key suspects from the Bai crime syndicate have been brought to justice and are awaiting trial, the Chinese police force will continue tracking down the rest of the fugitives. 

"There's still a sense of dissatisfaction because some fugitives remain at large. We must continue our efforts relentlessly and persistently to track them down and recover illicit gains, demonstrating the firm resolve of the Chinese police in cracking down on telecom fraud," Feng Haidong, deputy head of the criminal investigation division of the Shenzhen Public Security Bureau, was quoted as saying in the report.