Chinese Billionaire Guo Wengui Guilty Of US$1 Billion Fraud
A jury in New York on Tuesday found exiled Chinese billionaire Guo Wengui, also known as Miles Kwok and Miles Guo, guilty of defrauding his followers of more than US$1 billion.
Guo, avocal critic of the Chinese Communist Partywho has ties to right-wing U.S. politician Steve Bannon, was found guilty of nine of the 12 federalcharges brought against himby prosecutors in March, several of which could carry a sentence of up to 20 years’ imprisonment.
A jury found him guilty of racketeering conspiracy and various securities frauds, wire fraud and money laundering charges following a seven-week trial at a New York federal court. He faces decades in prison.
Guo’s lawyers said prosecutors hadn’t proven he’d cheated anyone.
“Miles Guo, an exiled Chinese businessman and purported billionaire, brazenly operated several interrelated fraud schemes, all designed to fleece his loyal followers out of their hard-earned money so that Guo could spend his days in his 50,000 square foot mansion, driving his $1 million Lamborghini, or lounging on his $37 million yacht,” U.S. Attorney Damian Williams said in a statement following the verdict.
“Thousands of Guo’s online followers were victimized so that Guo could live a life of excess,” Williams said.
Sentencing is expected Nov. 19.
Arrested in New York
Guo was arrested in March 2023 at his luxury apartment overlooking New York’s Central Park, and accused of using his online platform to lure his followers into investing in his companies, which included GTV Media and G/Clubs.
Guo fled China in 2014 amid accusations back home of rape, kidnapping, bribery and other crimes after people close to him were caught up in an anti-corruption campaign under ruling Chinese Communist Party leader Xi Jinping.
He said those allegations were trumped up by the Chinese authorities to punish him for his criticism of corruption in the highest echelons of the Chinese leadership.
On arrival in the United States, Guo applied for political asylum, moved into his luxury New York apartment and joined former President Donald Trump’s Mar-a-Lago golf club in Florida.
He later developed close ties with Trump’s former political adviser Steve Bannon, with the pair announcing a plan to overthrow the Chinese government in 2020.
During Guo’s trial, his defense team portrayed him as an ardent dissident who flaunted his wealth as part of his political critique of the Chinese Communist Party.
“Mr. Guo didn’t care about the money,” defense lawyer Sidhardha Kamaraju said in his closing argument last week. “He cared about the movement.”
‘His personal piggybank’
Kamaraju didn’t deny that Guo lived lavishly, but argued that it’s not a crime to be wealthy.
“It is not a crime to live in luxury or to spend money on nice things. It’s not a crime to have a yacht or a jet or to wear nice suits. It may not be our lifestyle. It may be odd,” he told jurors at the trial. “It may even be off-putting to some, but it’s not a crime.”
After Kamaraju spoke, prosecutor Juliana Murray told jurors that the defense lawyer was correct that Guo cared about the anti-CCP movement.
“And at least one of the reasons he loved it is because it was his personal piggybank,” Murray said in a closing argument.
Assistant U.S. Attorney Ryan Finkel said Guo “spouted devious lies to trick his followers into giving him money.”
He said Guo made hundreds of broadcasts and videos in which he promised followers that they would not lose money if they invested with him.
“I’m rich. I’ll take care of you,” the prosecutor said Guo told them.