Inside the dark world of Philippine scam centers

MANILA, Philippines — It started with a raid on a Chinese-run online gambling center north of Manila where hundreds of foreigners and Filipinos were forced to run scams or risk torture.

Then came explosive allegations that the local mayor was involved in the illicit operation -- and that she was a Chinese national masquerading as a Filipina.

The scandal stunned the nation and fuelled calls for the government to ban the online gambling industry over its links to financial scams, kidnapping, prostitution, human trafficking, torture and murder.

President Ferdinand Marcos outlawed the sector this week, saying "the grave abuse and disrespect to our system of laws must stop", and foreign workers involved have been given two months to leave the Philippines.

Authorities believe there could be several hundred illegal online gambling entities -- as well as a good number of the more than 40 licenced operators -- that are running scam centers under the noses of public officials.

Alice Leal Guo, the mayor of Bamban, where the raided scam center was metres from the municipal hall, has been accused of human trafficking and money laundering in relation to the operation.

Guo has been suspended from her job and is in hiding after a warrant was issued for her arrest. She has denied the allegations against her.

"It seems Alice Guo is only the tip of an iceberg," Senator Risa Hontiveros told a Senate committee investigating the online gambling industry.

"This committee hearing is in the process of uncovering a deep and deadly web of bad actors involving international criminal syndicates, local and national politicians, and perhaps malevolent elements of a foreign state."

The sprawling Bamban complex, which was operated by Chinese nationals and included office buildings, luxury villas and a large swimming pool, was raided in March after a Vietnamese worker escaped and called police.

More than 700 Filipinos, Chinese, Vietnamese, Malaysians, Taiwanese, Indonesians and Rwandans were found on site, along with documents allegedly showing that Guo was president of a company that owned the compound.

"She really needs to answer for this in jail," said Winston Casio, spokesman for the