Chinese Businessman Guo Wengui FRAUD CONVICTION
Chinese billionaire Guo Wengui, better known by numerous aliases, including Miles Guo, was found guilty on nine of the twelve counts of a billion-dollar fraud conspiracy on Wednesday by a New York jury.
Guo was found guilty of racketeering, money laundering, wire fraud, and securities fraud in connection with his alleged deception of thousands of online followers with various cryptocurrency and investment scams between 2018 and 2023, which totaled more than $1 billion.
Prosecutors claimed that Guo used the funds for an “extravagant lifestyle,” which included an enormous mansion, a yacht, pricey sports vehicles, a portfolio of valuable real estate, and a huge assortment of other luxuries.
On Wednesday, U.S. Attorney Damian Williams stated that Guo had “schemes” to deceive his followers to live a “life of excess.” Before immigrating to the US in 2015, Guo was a prosperous real estate developer in China and a vocal opponent of the Chinese Communist Party. His popularity grew among Chinese expats who, like him, detested the system and were inspired by his assertions that he had knowledge that could topple the Chinese government.
In 2018, Guo formed two ostensibly “non-profit” organizations and co-founded GTV Media Group, Inc. with Trump White House strategist and former executive chairman of the Breitbart News Network, Steve Bannon, who is also a harsh opponent of the Chinese Communist Party.
Prosecutors claim that in 2020, Guo promised to turn GTV into a multimedia behemoth by selling over 5,500 investors $452 million in common GTV stock. He had claimed that GTV had “a market value of two billion U.S. dollars” to potential investors. In addition, he promoted his cryptocurrency and used his status as a property tycoon and investing whiz in China to sell investors on a convoluted web of real estate and other ventures.
The victims of Guo said they were duped into parting with hefty sums of money in exchange for special access to Guo and membership in an esteemed online investing club he formed. A few of his clients mentioned getting second mortgages on their houses to buy Guo’s pricey, eventually useless investment items.
The prosecution claimed Guo diverted nearly all of the funds he defrauded investors and political allies into funding his extravagant lifestyle. In 2023, he filed for bankruptcy, claiming to have a net value of less than $100,000. Guo’s billion-dollar lifestyle, according to the prosecution, was a ruse to trick his targets into thinking he was doing extraordinarily well in the American business climate and that they could purchase a ticket on his gravy train.
This defense failed to persuade the jury, which found guilty on nine out of twelve counts. Sentences of up to 20 years in jail are possible for several of the convictions. He was taken into custody in March 2023 and has remained there ever since. On November 19, there will be a hearing for his sentence.
