Robert Besser
19 Mar 2023, 13:59 GMT+10
WASHINGTON D.C.: The US government has charged exiled Chinese businessman Guo Wengui with being the mastermind behind a complex conspiracy to defraud online followers.
Authorities said that 52-year-old Guo, who has ties to former President Donald Trump adviser Steve Bannon, cheated thousands of followers out of more than $1 billion since 2018 by promising "outsized" investment returns.
Guo diverted most of his investor's money to fund a lavish lifestyle, with help from longtime financial adviser Kin Ming Je, according to authorities.
Officials said that Guo's fraudulent purchases included a $37 million yacht and a 50,000 square-foot mansion in northern New Jersey.
In a statement, US Attorney Damian Williams in Manhattan said that 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."
Guo was arrested last week and pleaded not guilty in Manhattan federal court before US Magistrate Judge Katharine Parker, who ordered him detained without bail.
A total of $634 million of Guo's alleged fraud proceeds from 21 bank accounts, including several at the now-closed Silvergate Bank, have been seized by the US Department of Justice.
If found guilty, the criminal charges against Guo could result in his being sent to prison for decades. He also faces US Securities and Exchange Commission civil charges.
Guo, who is a prominent critic of the Chinese Communist Party, left China in 2014 during an anti-corruption crackdown under President Xi Jinping, and has been accused of crimes, including bribery and money laundering, by Chinese authorities.
Get a daily dose of The US News news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to The US News.
More InformationHANOI, Vietnam: Tensions were again increasing off the coast of Vietnam as Hanoi ordered its navy to shadow a Chinese ...
In Warsaw last February, President Joe Biden condemned the lawless Russian invasion of Ukraine: "The idea that over 100,000 forces ...
TOKYO, Japan: Fears over intensifying Chinese military activity directed towards Taiwan could escalate into war have prompted Japan, the United ...
TEGUCIGALPA, Honduras: After Honduran President Xiomara Castro severed ties with Taiwan in favor of China to gain more investment and ...
NEW YORK, New York - A Manhattan grand jury has indicted Former U.S. President Donald Trump for his role in ...
MEMPHIS, Tennessee: Tennessee authorities are slowly releasing information about a weekend car crash on a freeway that killed six young ...
DUBLIN, Ireland: Bank of Ireland has announced that it has raised fixed mortgage rates following a cumulative 3.5 percent rate ...
NEW YORK, New York - U.S. stocks finished the third quarter with a bang on Friday. Despite a volatile start, ...
CUPERTINO, California: In a move aimed at disrupting the fintech sector dominated by Affirm Holdings and Sweden's Klarna, this week ...
BURBANK, California: Walt Disney has begun its planned lay off of 7,000 staff, which was announced earlier this year.A letter ...
NEW YORK CITY, New York: A study published this week reported that China spent $240 billion between 2008 and 2021 ...
NEW YORK, New York - U.S. stocks posted a decent rally on Thursday with all the major indices making good ...