Controversial exiled Chinese billionaire Guo Wengui — an accomplice of former Trump White House marketing consultant Steve Bannon — became arrested Wednesday in New York for allegedly orchestrating a complex $1 billion fraud scheme that duped on line fans with guarantees of oversized funding returns.
Guo allegedly used a number of the cash raised thru his organization GTV Media and different entities to shop for a 50,000-rectangular foot New Jersey mansion, a $37 million yacht, a $3.five million Ferrari for his son, a $140,000 Bosendorfer piano and Hasten 2000T mattresses that fee a whopping $36,000 apiece.
Prosecutors seized extra than $650 million in alleged fraud proceeds from 21 unique financial institution debts and property that protected a Lamborghini Aventador SVJ Roadster vehicle as a part of the case towards Guo and his monetary marketing consultant William Je in Manhattan federal court.
Guo, 52, pleaded now no longer responsible Wednesday afternoon in Manhattan. He postponed a bail utility till his legal professionals go back from out of town. A public defender who dealt with the listening to for Guo had no comment. A hearthplace broke out as FBI sellers searched a Manhattan penthouse condo owned with the aid of using Guo on Wednesday, an employer spokesperson stated. The sellers observed smoke coming from a mild fixture and referred to as 911 round midday ET.
The New York Fire Department extinguished the blaze, the motive of that is beneathneath research with the aid of using a bomb squad. Guo became in custody earlier than the hearthplace started. The Securities and Exchange Commission one by one filed a associated civil criticism towards Guo and the 56-year-antique Je, a resident of the UK and Hong Kong who stays at large. The SEC accuses Guo and Je of involvement in unregistered and fraudulent monetary services.
The SEC one by one accused Guo of creating misrepresentations in elevating masses of hundreds of thousands of greenbacks from buyers thru a cryptocurrency asset referred to as H-Coin. Last September, 3 agencies connected to Guo, which include GTV Media, agreed to pay nearly $540 million to settle civil allegations with the aid of using the SEC of creating unlawful services of inventory and virtual property.
Guo, who’s acknowledged with the aid of using a couple of unique names, which include Miles Guo and Miles Kwok, Brother Seven, and The Principal, has lived withinside the United States on account that 2015 after fleeing China, reportedly to duck looming corruption expenses. In 2018, he based nonprofit corporations, the Rule of Law Foundation and the Rule of Law Society, which engaged in a public family members marketing campaign towards the Chinese Communist Party.
Guo “used the nonprofit corporations to accumulate fans who have been aligned together along with his purported coverage targets in China and who have been additionally willing to believe [Guo`s] statements concerning funding and cash-making opportunities,” the U.S. Attorney`s Office for the Southern District of New York stated in a declaration at the crook case.
Bannon, who served former President Donald Trump as senior White House marketing consultant for much less than a year, at one factor became at the board of administrators of the Rule of Law Society. In June 2021, Guo`s nonprofits hosted a non-public celebration in New York attended with the aid of using Bannon, former Trump attorney Rudy Giuliani, former Trump country wide safety marketing consultant Michael Flynn, and the Trump best friend and conspiracy theorist Mike Lindell, CEO of MyPillow.
In August 2020, federal government arrested Bannon on a mega-yacht belonging to Guo off the coast of Connecticut on expenses associated with siphoning off cash for the “We Build the Wall” fundraising marketing campaign. Months later, rapidly earlier than Trump left office, he pardoned Bannon in that case.
Last month, a attorney for Hunter Biden, the son of President Joe Biden, despatched Guo a letter disturbing he maintain any statistics associated with Hunter Biden. The letter became despatched months after Mother Jones mag special how Bannon, at the same time as running with Giuliani, had “organized for Guo and his fans to unfold salacious motion pictures and images from Hunter Biden`s laptop,” which became acquired from a Delaware pc restore shop.
A 12-matter grand jury crook indictment unsealed Wednesday alleges that Guo and Je “conspired to defraud hundreds of sufferers” withinside the scheme, which spanned from 2018 to this month. The alleged conspiracy concerned the use of various entities and applications to reap investments from the sufferers, who have been deceived with the aid of using misrepresentations and fake statements, prosecutors stated.
“Kwok lied to his sufferers and promised them oversized returns in the event that they invested, or furnished cash to, GTV [Media], his so-referred to as Himalaya Farm Alliance, G|CLUBS, and the Himalaya Exchange,” prosecutors stated in a press release. Guo and Je are charged with twine fraud, securities fraud, financial institution fraud and cash laundering.
Je is also charged with obstruction of justice for allegedly seeking to switch cash associated with the conspiracy to the United Arab Emirates on account that remaining September, after U.S. government served seizure warrants on numerous banks to capture about $355 million of proceeds from the alleged fraud.
Both Guo and Je face feasible sentences of up to twenty years in jail if convicted withinside the crook case. Gurbir Grewal, director of the SEC`s enforcement division, referred to as Guo “a serial fraudster, who raised extra than $850 million with the aid of using promising buyers oversized returns on purported crypto, generation and comfort precise funding opportunities.”
“In reality, Guo took benefit of the hype and charm surrounding crypto and different investments to victimize hundreds and fund his and his family`s lavish lifestyle,” Grewal stated. The SEC`s criticism stated that one instance of Guo and Je`s alleged fraud became a non-public placement presenting of not unusualplace inventory in GTV Media Group.
“Guo and Je allegedly diverted $one hundred million of investor finances to a hedge fund for the only gain of a organization this is owned with the aid of using Guo`s son,” the SEC stated.
And Guo allegedly misappropriated investor proceeds in different services to pay extra than $forty million to shop for and renovate the New Jersey mansion, and to shop for the Ferrari for his son, the SEC stated.
