Hong Kong News

Nonpartisan, Noncommercial, unconstrained.
Wednesday, Mar 22, 2023

0:00
0:00

The US government has charged Chinese businessman Guo Wengui with leading a $1 billion fraud scheme that cheated thousands of followers out of their money.

Guo promised high investment returns but used the funds to support his lavish lifestyle, including purchasing a $37 million yacht, a $3.5 million Ferrari, and two $36,000 mattresses.

Authorities said Guo, with help from longtime financial adviser Kin Ming Je, cheated thousands of followers since 2018 by promising "outsized" investment returns, but diverting much of their money to fund lavish lifestyles for himself and his family.

The alleged improper purchases included a $37 million yacht, a 50,000 square-foot mansion in northern New Jersey, a $3.5 million Ferrari for Guo's son, a $62,000 TV, and two $36,000 mattresses, according to authorities.

Guo, 52, was charged with 11 criminal counts including securities fraud, wire fraud and concealment of money laundering, after "lining his pockets with the money he stole," U.S. Attorney Damian Williams in Manhattan said in a statement.

The defendant was arrested on Wednesday morning, and pleaded not guilty in Manhattan federal court before U.S. Magistrate Judge Katharine Parker, who ordered him detained without bail.

Guo wore a black shirt, black pants and brown shoes to the courtroom. He was not handcuffed, and brought his hands together in a prayer sign toward spectators before being led out.

Lawyers for Guo did not immediately respond to requests for comment. They will propose a "robust bail package," according to Tamara Giwa, a federal public defender who represented Guo at Wednesday's hearing. His next court appearance is April 4.



BANNON ASSOCIATE
Guo, who has used other names like Ho Wan Kwok and Miles Kwok, has been a business associate of Bannon, who was arrested in a fraud case in August 2020 while aboard Guo's yacht, the Lady May.

Trump pardoned Bannon in the final hours of his presidency. Bannon is not accused of wrongdoing in Guo's criminal case.

The U.S. Department of Justice said it seized and is seeking the forfeiture of $634 million of Guo's alleged fraud proceeds from 21 bank accounts, including several at the now-closed Silvergate Bank.

It said it also seized assets purchased with proceeds from Guo's alleged fraud, including a Lamborghini Aventador, and wants Guo to forfeit the yacht.

The criminal charges carry several decades of potential prison time. Guo also faces related U.S. Securities and Exchange Commission civil charges.

Je, who lives in London and is also known as William Je, faces the same 11 criminal counts plus an obstruction charge. He is at large.

Guo is a prominent critic of China's Communist Party. He left that country in 2014 during an anti-corruption crackdown under President Xi Jinping, and has been accused there of crimes including bribery and money laundering. Guo has denied wrongdoing.



'SERIAL FRAUDSTER'
Following Guo's arrest, a fire broke out on the 18th floor at the Sherry-Netherland hotel, where he has an apartment, on Manhattan's Upper East Side.

A spokesman for New York City's fire department said no injuries were reported and officials were investigating. He declined to say if they were examining any connection to Guo's arrest.

Court papers filed on Wednesday described a web of offerings that according to prosecutors targeted investors aligned with Guo's policy objectives in China, and inclined to believe the self-proclaimed billionaire when it came to investing.

"We allege that Guo was a serial fraudster," SEC enforcement chief Gurbir

Newsletter

Related Articles

Hong Kong News
Close
0:00
0:00
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Goldman Sachs cuts outlook for European bank debt over Credit Suisse crisis
Paris Rioting vs Macron anti democratic law
'Sexual Fantasy' Assignment At US School Outrages Parents
The US government has charged Chinese businessman Guo Wengui with leading a $1 billion fraud scheme that cheated thousands of followers out of their money.
Credit Suisse to borrow $54 billion from Swiss central bank
The BBC problem about China
Russian Hackers Preparing New Cyber Assault Against Ukraine
"Will Fly Wherever International Law Allows": US Warns Russia After Drone Incident
If this was in Tehran, Moscow or Hong Kong
Announcing GPT-4
TRUMP: "Standing before you today, I am the only candidate who can make this promise: I will prevent World War III."
China is calling out the US, UK, and Australia on their submarine pact, claiming they are going further down a dangerous road
A brief banking situation report
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
'No relation to the American SVB': India's SVC Bank acts to calm depositors amid brand name confusion.
Good news: The U.S. government is now guaranteeing all deposits, held by, Silicon Valley Bank, and the funds are available as of today
Silicon Valley Bank exec was Lehman Brothers CFO
In a potential last-ditch effort, HSBC is considering a rescue deal to save Silicon Valley Bank UK from insolvency
Saudi Arabia has announced a major breakthrough in diplomacy with Iran after two years of intense talks
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
City officials in Berlin announced on Thursday that all swimmers at public pools will soon be allowed to swim topless
Fitness scam
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
A primitive judge in Australia sparked outrage when he told a breastfeeding woman to leave his courtroom for being “a distraction"
Barcelona is feeling the heat as they face corruption charges over payments to former vice-president of Spain's referees' committee, Jose Maria Enriquez Negreira
Banking regulators close SVB, the largest bank failure since the financial crisis
Silicon Valley Bank: Struggles Threaten Tech Startup Ecosystem"
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Old clip of Bill Gates saying Ukraine is a big, fat, corrupt sinkhole is going viral
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
2 universities in Hong Kong embrace use of ChatGPT, other AI tools
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
Missing Chinese banker was working to set up Singapore family office
Hong Kong ditches Covid mask mandate after 945 days
Xi Jinping and His Wife Meet with Cambodian King Norodom Sihamoni and Queen Mother Norodom Monineath Sihanouk
How do stolen goods end up on Amazon, eBay and Facebook Marketplace?
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Is Gold the Ultimate Safe Haven Asset in Times of Uncertainty?
Spain officials quit over trains that were too wide for tunnels...
Hello. Here is our news digest from London.
Corruption and Influence Buying Uncovered in International Mainstream Media: Investigation Reveals Growing Disinformation Mercenaries
When it comes to Tesla vs Lamborghini, an empty vessel makes more noise
European MP Clare Daly condemns US attack on Nord Stream
Former U.S. President Carter will spend his remaining time at home and receive hospice care instead of medication
North Korea test-fires an intercontinental ballistic missile into the Sea of Japan west of Hokkaido
US bombed Nord Stream gas pipelines, claims investigative journalist Seymour Hersh
US Joins 15 NATO Nations in Largest Space Data Collection Initiative in History
×