The Philippine Drug Enforcement Agency (PDEA) has exposed a complex network allegedly connecting Philippine Offshore Gaming Operators (POGOs) to drug syndicates, money laundering schemes, and fraudulent corporate activities.
During a recent House of Representatives quad committee hearing, PDEA Deputy Director General Renato Gumban presented a detailed matrix. He outlined how transnational criminal groups exploit legal loopholes and corporate layering to carry out illegal operations.
This investigation originated from a joint operation on September 24, 2023. Authorities from PDEA, the National Bureau of Investigation (NBI), the Bureau of Customs (BOC), and the National Intelligence Coordinating Agency (NICA) raided a warehouse in Mexico, Pampanga.
As a result, they seized 560 kilograms of shabu valued at PHP3.6 billion ($64.8 million). This operation implicated Willie Ong, also known as Cai Qimeng. Ong incorporated Empire 999 Realty, Inc. and acquired the property with assistance from former Mexico Mayor Teddy Tumang.
Further investigation revealed that Ong and Empire 999 Realty operated within a broader criminal network. This network included entities such as Golden Sun 999 Realty and Development Corp. and Yatai Industrial Park, Inc.
Both companies were tied to Ong and incorporator Aedy Yang. These companies used complex corporate structures to hide their illicit dealings.
Authorities also traced connections to businesswoman Rose Nono Lin. She was known for her involvement in Pharmally Pharmaceutical Corp.
Despite having only PHP625,000 ($11,250) in declared capital, Pharmally secured PHP11 billion in government contracts during the pandemic. Lin’s links extended to Michael Yang, former economic adviser to ex-President Rodrigo Duterte, and her husband Allan Lim (alias Lin Weixiong).
Lim faced accusations of participating in drug trafficking and junket operations.
PDEA identified Lim in a 2017 drug matrix for his alleged connections to drug labs in Luzon and Mindanao. Investigators revealed that Lim used several aliases and multiple passports to cover his tracks.
Meanwhile, they accused Michael Yang of handling logistics and financial operations for drug syndicates.
Moreover, PDEA detailed the direct involvement of POGOs in organized crime. Investigators pointed to Hongsheng Gaming Technology Inc. in Bamban, Tarlac as a prime example.
The company received funding from questionable sources, including Michael Yang’s sibling, Hong Jiang Yang. In March 2024, a raid on Hongsheng’s compound exposed suspicious financial flows and weak internal controls.
Hongsheng leased its facilities from Baufu Land Development, Inc., a company owned by former Bamban Mayor Alice Guo. The Anti-Money Laundering Council (AMLC) flagged Guo for facilitating illegal fund transfers through companies like QJJ Farm and RMCE Metal Products Trading Co.
These entities also appeared in past reports on money laundering linked to convicted Chinese drug lord Peter Co. Authorities found that Co’s bank accounts remained active despite his incarceration. This discovery raised even more red flags.
PDEA’s findings revealed a deeply layered network that used shell companies and overlapping ownership to disguise criminal activity. These activities ranged from drug trafficking and illegal land deals to large-scale financial fraud.
Batangas 2nd District Representative Gerville Luistro described the revelations as both “enlightening and deeply troubling.” She added that the extent of corruption underscored the need for urgent reforms.
With POGOs already under fire for alleged human trafficking, labor exploitation, and tax evasion, these new findings increase pressure on lawmakers. As a result, calls for tighter regulation—or even a complete ban—have intensified.
The House quad committee plans to continue the investigation. Lawmakers and enforcement agencies are now working to dismantle the criminal infrastructure that allows these operations to thrive.
Ultimately, the government aims to safeguard national security, uphold public trust, and restore integrity to both the gaming and corporate sectors.
