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Chinese language billionaire arrested, charged in alleged fraud conspiracy that bilked buyers of greater than $1 billion

New York CNN  — 

Chinese language billionaire and proclaimed dissident Guo Wengui was arrested Wednesday and charged with defrauding hundreds of followers out of greater than $1 billion by advanced funding schemes, US prosecutors introduced Wednesday.

Guo, a staunch critic of the Chinese language authorities who’s exiled in Manhattan and near former Donald Trump adviser Steve Bannon, was taken into custody in New York on Wednesday morning. He’s charged with defrauding or misappropriating investor cash utilizing totally different schemes, together with his media firm GTV Media Group, a farm mortgage program by Himalaya Farm Alliance, and a cryptocurrency known as Himalaya Coin.

145-foot luxury yacht worth approximately $37 million, used by Guo Wengui, according to the Justice Department.

Guo is often known as Ho Wan Kwok and Miles Guo.

Prosecutors stated as an alternative of utilizing the cash the way in which he promised potential buyers, Guo directed the funds to spend money on a hedge fund to profit GTV and a relative, to cowl the upkeep funds for his $37 million, 145-foot luxurious yacht, a New Jersey mansion and a custom-built Bugatti sports activities automobile valued at $4.Four million. Prosecutors stated in a letter to the choose that they’re looking for his detention, arguing he poses a critical danger of flight.

CNN has reached out to Guo’s lawyer for remark.

Guo co-founded two nonprofit organizations, the Rule of Legislation Basis and the Rule of Legislation Society, that prosecutors allege he used to draw a following who believed in lots of his concepts.

These nonprofits had been linked to a bunch selling the speculation that the novel coronavirus was seemingly engineered in a Chinese language lab. The Rule of Legislation organizations had been co-founded by Guo and Bannon.

Bannon has not been charged on this case.

Bannon was arrested in 2020 on Guo’s yacht on unrelated fraud expenses stemming from a border wall fundraising effort. Bannon was pardoned by Trump however indicted on comparable state expenses. Bannon has pleaded not responsible.

50,000 square foot New Jersey mansion owned by Guo Wengui, according to the US Justice Department.

Prosecutors stated they’ve seized $634 million from 21 financial institution accounts and a Lamborghini Aventador SVJ Roadster.

Along with prison expenses of conspiracy, wire fraud, securities fraud, worldwide cash laundering and obstruction of justice, Guo was additionally sued by the Securities and Alternate Fee.

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