Philippine court orders forfeiture of over $3M in assets from Clark POGO
A Makati court has ordered the forfeiture of over PHP189 million ($3.4 million) in cash and assets from a Philippine Offshore Gaming Operator (Pogo) allegedly involved in human trafficking and cybercrime.
According to local media reports, the decision stems from a case against Colorful and Leap Group Co., a subsidiary of CGC Technologies Inc., which operated inside the Clark Sun Valley Hub in Mabalacat City, Pampanga. The ruling was issued on 24 April by Judge Antonio Ray Ortiguera of the Makati Regional Trial Court Branch 148. It followed a raid conducted on 2 May 2023 by law enforcement agencies led by the Presidential Anti-Organized Crime Commission (PAOCC), with assistance from the Anti-Money Laundering Council (AMLC).
The raid was based on search warrants issued by the Malolos City Regional Trial Court Branch 81. Authorities said they uncovered widespread illegal activity, including human trafficking and online scams disguised as offshore gaming. Rescued during the operation were 1,137 foreign nationals and 129 Filipinos, many of whom were allegedly forced into fraudulent schemes involving cryptocurrency and romance scams.
Assets include cash, vehicles, and facilities
Based on local reports, authorities seized vaults containing multiple currencies during the operation. The total amount recovered equated to around PHP189.6 million ($3.4 million), comprising Philippine pesos, US dollars, Chinese yuan, Vietnamese dong, Thai baht, and others. In addition to the cash, the court ordered the forfeiture of other assets, including vehicles and the physical facilities operated by the company within the Sun Valley Hub.
The PAOCC noted that the accused parties denied ownership of the funds and challenged the legitimacy of the forfeiture case. However, the court found the government’s position to be in order and ruled in its favour. Notices of the decision have been served to the detained individuals held at the Angeles City District Jail.
Clark authorities move to shut down operations
The Clark Development Corporation (CDC), which oversees the Clark Freeport Zone, confirmed it had issued cease-and-desist orders and revoked the registration and tax exemption certificates of the businesses involved. This includes eight buildings and a warehouse located in the Sun Valley complex.
CDC President and CEO Agnes Devanadera stated that the action is part of efforts to enforce legal and regulatory compliance within the Freeport. She emphasised that Clark Freeport will not tolerate illegal operations or violations of law within its jurisdiction.
Facilities may be repurposed for public use
According to PAOCC Undersecretary Gilberto Cruz, the seized buildings are now under the custody of the CDC and may be repurposed to serve future government or economic projects. He added that coordinated enforcement and legal measures are essential in dismantling transnational criminal operations that exploit offshore gaming as a cover.
The forfeiture order is considered a precedent in the government’s campaign against illegal POGOs, notably since President Ferdinand Marcos Jr. announced a policy against such entities last year. The ruling marks the first instance of full asset forfeiture from a POGO operation, further reinforcing the administration’s stance on eliminating criminal enterprises linked to the industry.
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