On July 16th, 2024, EDT, Guo Wengui (also known as Miles Guo), an Interpol “Hongtong” who had fled to the United States for many years, was convicted of defrauding thousands of people over US$ 1 billion in a Manhattan court in new york.
Prosecutor Damian Williams said in a statement after the verdict that Guo Wengui was found guilty of 9 of the 12 counts of fraud and money laundering. The judge will pronounce the corresponding sentence on November 19 this year, and Guo Wengui may face decades of imprisonment.
According to the verdict, Guo Wengui brazenly implemented several interrelated fraud schemes, all of which were aimed at squeezing hard-earned money from loyal followers to finance his luxurious life during his exile.According to CNN, after the verdict was read, Guo Wengui smiled at his legal team and dozens of supporters in court, then turned to hug lawyer Sabrina Shroff and shook hands with other members of the defense team.
According to public information and reports, Guo Wengui, 57, was the actual controller of Henan Yuda Investment Co., Ltd. and Beijing Pangu Investment Co., Ltd. On November 3, 2014, Guo Wengui publicly exposed Li You, CEO of Founder of Peking University, and others suspected of insider trading through Zhengquan Holdings, and left China that year. Later, he created a so-called insider profile through webcasting and other activities, and gained a large number of overseas followers.According to a survey in the United States, Guo Wengui raised more than $1 billion from his online fans between 2018 and 2023. The public statement was to invest in his business and cryptocurrency plan, but it was actually used as a “personal piggy bank”.
In 2021, three companies related to Guo Wengui, including GTV, paid $539 million to settle the allegations made by the US Securities and Exchange Commission (SEC) against these three companies about illegal stock issuance. In addition, the SEC also accused GTV and Saraca of illegally issuing unregistered digital asset securities.According to the prosecutor, Guo Wengui’s other scams involved a club with private members only (the minimum membership threshold was $10,000) and a cryptocurrency platform. In addition, the US government accused him of misappropriating investors’ funds to buy luxury goods, including a red Lamborghini, a Ferrari worth $4 million and a New Jersey mansion worth $26 million.
Guo Wengui also maintained a close relationship with Steve Bannon, a senior strategic adviser to former US President Trump. Bannon arrived in a federal prison in Connecticut on July 1 after serving four months in prison for contempt of the US Congress.In the closing statement of Guo Wengui’s case that day, the prosecutor told the jury that Guo Wengui paid Bannon $1 million and planned to improve his reputation in the United States through him.