A U.S. jury has convicted Chinese business tycoon Guo Wengui of engaging in a massive multiyear fraud scheme that defrauded thousands of his followers. Guo, also known as Miles Kwok, was once considered among the wealthiest individuals in China before his arrest in New York in March 2023.
During the seven-week trial, Guo was accused of deceiving investors by soliciting funds for fake investments and using the money to fund his extravagant lifestyle. He was found guilty on nine of the 12 criminal counts, including racketeering conspiracy.
Prosecutors revealed that Guo's fraudulent activities were aimed at extracting money from his loyal followers to support his opulent lifestyle, which included a 50,000 square foot mansion, a $1 million Lamborghini, and a $37 million yacht.
Guo, who fled China in 2014 amidst corruption allegations, sought political asylum in the U.S. and became associated with prominent figures like former President Donald Trump's strategist, Steve Bannon. Together, they announced a joint initiative to overthrow the Chinese government.
Prosecutors disclosed that Guo's fraudulent schemes involved convincing hundreds of thousands of people to invest over $1 billion in his various enterprises, including GTV Media Group Inc. and the Himalaya Farm Alliance.
During the trial, Assistant U.S. Attorney Ryan Finkel emphasized that Guo misled his followers with false promises of financial security while using their investments for personal luxuries, such as expensive jewelry, furniture, and real estate properties.
Guo's defense argued that the prosecution failed to provide concrete evidence of intentional fraud, highlighting his role as a pro-democracy advocate and questioning his motive to undermine the movement he supported.
Despite acknowledging Guo's persecution by the Chinese Communist Party, prosecutors maintained that his actions did not justify defrauding his supporters. They also pointed out Guo's creation of a 'blacklist' targeting his enemies and orchestrating protests against regulatory authorities and court-appointed trustees.
The verdict against Guo underscores the consequences of financial misconduct and exploitation, serving as a cautionary tale for individuals who abuse their influence for personal gain.
