Transcript of Ranking Member Krishnamoorthi’s Opening Statement from Hearing on Financial Aggression: How the Chinese Communist Party Exploits American Retirees and Undermines National Security

April 10, 2025
Press Release

WASHINGTON, D.C. – Today, the House Select Committee on the Strategic Competition Between the United States and the Chinese Communist Party (CCP) and the Senate Special Committee on Aging convened a joint hearing entitled, “Financial Aggression: How the Chinese Communist Party Exploits American Retirees and Undermines National Security.” The hearing featured expert witness testimony on risks posed to seniors in the form of financial scams and other illicit activities based in the People’s Republic of China (PRC). 

The following witnesses provided testimony:

Below is a transcript of the opening statement from the Ranking Member. Footage of the Ranking Member’s opening statement can be found here, and his questions to the witnesses can be found here.

Thank you to Chair Scott, Ranking Member Gillibrand and Chair Moolenaar for convening us today. I’d like to address three things: 1) a scamming practice called “pig butchering”; 2) the impact of China-backed organized crime syndicates’ scams on older Americans; and 3) China’s culpability in these scams.

First, "pig butchering" is a scam named for the way it lures victims in, “fattens” them up, gains their trust, and then drains their finances. In many cases, a scammer poses as a family member or friend urgently in need of money. In others, scammers use fake identities to get romantically involved with unsuspecting victims, such as older adults. Once they earn the victim’s trust, they ask for money or suggest investing through a fake app that drains their finances. Take this story of a woman from just outside my district, who lost almost $1 million to a scammer using "pig butchering.”

Video: [Reporter] – “Her husband passed away decades ago and recently DeMask met a man online.” Demask: “He said he loved me…” ... “the second time I sent $35,000. Reporter: Over time, that money sent reached nearly 1 million dollars. DeMask says the scammer told her she would get double her money back in his investments. Instead, she now owes money back to her bank, cash which she took from her home equity loan.”

Now, my second point; this is not just a financial issue – it's a human rights issue and a national security concern. According to the US Institute of Peace (USIP), cyber scamming in Southeast Asia—mainly Burma and Cambodia – is driven by Chinese gangs and generates almost $44 billion annually. Weak law enforcement and corruption in this region have also allowed gangs to traffic people from 70 countries, including Americans, into this illegal industry. As USIP has pointed out, this scamming industry is so vast and lucrative that it now parallels fentanyl as one of the top threats posed by Chinese criminal networks to the United States. 

My staff actually received a scam text this week, which we can see here, and it starts with a simple “hello.” Many of us delete or just not respond when we get texts like this one. 

In this case, though, we decided to respond to better understand how these scams work. Within minutes, we received a WhatsApp link and pictures of a woman who said her name is Daisy. 

Here she is, and she says: “These are all my travel photos from different countries! Every time I travel, I can meet all kinds of people and things!”

Daisy then goes on to compliment us, saying “You’re welcome! You give me the impression of a kind, friendly, polite and well-mannered man. I can feel the warmth when chatting with you.”  

Over the course of just seven hours, our dear friend Daisy asked for an investment and my staffer asked how much she needs. She responded, “approximate investment of 10 million to 30 million dollars”—money that "Daisy" would happily walk away with.

It’s dangerous scams like this one that are preying on older Americans.

Third, there is more to this story than just Chinese gangs operating in the shadows. These groups are directly tied to the CCP. This is Wan Kuok-Koi, aka “Broken Tooth,” a Chinese businessman—or more accurately a mafia boss— who is behind a scam compound tied to the CCP.  Broken Tooth’s public motto is “I used to fight for the triads, and I now fight for the Communist Party.”

Another gentleman behind a scam city – seen here with a Burmese warlord – is She Zhijiang. He is wanted in China for financial crimes, but his ties to the CCP allowed him to operate freely for years before being detained by Thai authorities.  

China now seems to be taking some steps to reckon with this issue – but it’s too little, too late. Like the fentanyl issue, the CCP turned a blind eye and has allowed this to happen. The CCP must recognize its role in allowing gang bosses and scam centers to run rampant. The financial and human cost of these scams is enormous, and we must act now to protect older Americans. 

Thank you.

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