Guo Wengui Charged in Alleged $1 Billion Fraud Conspiracy
Federal prosecutors in Manhattan have charged exiled Chinese businessman
Guo Wengui
with duping investors out of hundreds of millions of dollars to bankroll the purchase of a sprawling mansion, a 145-foot luxury yacht and other lavish items.
Mr. Guo, also known as Kwok Ho Wan, was arrested Wednesday morning in New York and is charged with 11 counts of fraud and money laundering, according to an indictment unsealed Wednesday in New York federal court. Prosecutors said he orchestrated a $1 billion scheme that preyed on hundreds of thousands of his online followers to purchase stock in his media company, fund a farm loan program and join a luxury-services club.
Kin Ming Je, a financier also known as William Je, was also charged in the alleged scheme and faces 12 counts, including fraud, money laundering and obstruction of justice. He is currently at large, according to the Manhattan U.S. attorney’s office.
Lawyers for Mr. Guo and Mr. Je didn’t immediately respond to requests for comment.
Prosecutors say Guo Wengui used fraudently obtained funds to pay for this 145-foot luxury yacht, the Lady May.
Photo:
Department of Justice
Prosecutors allege that starting in 2018, the two defendants allegedly made false promises of outsize returns to investors, but lied about how the raised funds would be used. Messrs. Guo and Je directed $100 million purportedly raised for the media company, GTV Media Group Inc., to a high-risk hedge fund, prosecutors say.
Mr. Guo, a former real-estate developer, has said he fled China in 2014 after hearing that a state security official to whom he was close would soon be arrested.
In 2017, Mr. Guo launched a social-media campaign to expose alleged corruption among China’s business and political elites, which has elicited rebukes from the Chinese government.
Former Trump political adviser
Steve Bannon
was arrested on Mr. Guo’s yacht, the Lady May, off the coast of Connecticut in 2020, and accused of fraud offenses for a border-wall scheme unrelated to Mr. Guo. Mr. Bannon, who pleaded not guilty, was later pardoned by former President Trump.
Write to James Fanelli at [email protected] and Corinne Ramey at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
Federal prosecutors in Manhattan have charged exiled Chinese businessman
Guo Wengui
with duping investors out of hundreds of millions of dollars to bankroll the purchase of a sprawling mansion, a 145-foot luxury yacht and other lavish items.
Mr. Guo, also known as Kwok Ho Wan, was arrested Wednesday morning in New York and is charged with 11 counts of fraud and money laundering, according to an indictment unsealed Wednesday in New York federal court. Prosecutors said he orchestrated a $1 billion scheme that preyed on hundreds of thousands of his online followers to purchase stock in his media company, fund a farm loan program and join a luxury-services club.
Kin Ming Je, a financier also known as William Je, was also charged in the alleged scheme and faces 12 counts, including fraud, money laundering and obstruction of justice. He is currently at large, according to the Manhattan U.S. attorney’s office.
Lawyers for Mr. Guo and Mr. Je didn’t immediately respond to requests for comment.
Prosecutors say Guo Wengui used fraudently obtained funds to pay for this 145-foot luxury yacht, the Lady May.
Photo:
Department of Justice
Prosecutors allege that starting in 2018, the two defendants allegedly made false promises of outsize returns to investors, but lied about how the raised funds would be used. Messrs. Guo and Je directed $100 million purportedly raised for the media company, GTV Media Group Inc., to a high-risk hedge fund, prosecutors say.
Mr. Guo, a former real-estate developer, has said he fled China in 2014 after hearing that a state security official to whom he was close would soon be arrested.
In 2017, Mr. Guo launched a social-media campaign to expose alleged corruption among China’s business and political elites, which has elicited rebukes from the Chinese government.
Former Trump political adviser
Steve Bannon
was arrested on Mr. Guo’s yacht, the Lady May, off the coast of Connecticut in 2020, and accused of fraud offenses for a border-wall scheme unrelated to Mr. Guo. Mr. Bannon, who pleaded not guilty, was later pardoned by former President Trump.
Write to James Fanelli at [email protected] and Corinne Ramey at [email protected]
Copyright ©2022 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8
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