Chinese billionaire arrested and charged in alleged fraud conspiracy that bilked investors of more than $1 billion

Chinese language billionaire and proclaimed dissident Guo Wengui was arrested Wednesday and charged with defrauding hundreds of followers out of greater than $1 billion by way of complicated funding schemes, US prosecutors introduced Wednesday.

Guo, a staunch critic of the Chinese language authorities who’s exiled in Manhattan and near former Donald Trump adviser Steve Bannon, was taken into custody in New York on Wednesday morning. He’s charged with defrauding or misappropriating investor cash utilizing completely different schemes, together with his media firm GTV Media Group, a farm mortgage program by way of Himalaya Farm Alliance, and a cryptocurrency known as Himalaya Coin.

Guo is also called Ho Wan Kwok and Miles Guo.

Prosecutors mentioned as an alternative of utilizing the cash the way in which he promised potential buyers, Guo directed the funds to spend money on a hedge fund to profit GTV and a relative, to cowl the upkeep funds for his $37 million, 145-foot luxurious yacht, a New Jersey mansion and a custom-built Bugatti sports activities automobile valued at $4.4 million.

A federal choose denied bail after Guo consented to detention.

In the meantime, a hearth broke out in Guo’s house when the FBI was on website executing a search warrant earlier Wednesday, in accordance with an individual accustomed to the matter. A spokesman for the US lawyer’s workplace, Nicholas Biase, mentioned the reason for the hearth is underneath investigation.

CNN has reached out to Guo’s lawyer for remark.

Guo co-founded two nonprofit organizations, the Rule of Regulation Basis and the Rule of Regulation Society, that prosecutors allege he used to draw a following who believed in lots of his concepts.

These nonprofits had been linked to a gaggle selling the idea that the novel coronavirus was seemingly engineered in a Chinese language lab. The Rule of Regulation organizations had been co-founded by Guo and Bannon.

Bannon has not been charged on this case.

Bannon was arrested in 2020 on Guo’s yacht on unrelated fraud expenses stemming from a border wall fundraising effort. Bannon was pardoned by Trump however indicted on related state expenses. Bannon has pleaded not responsible.

Prosecutors mentioned they’ve seized $634 million from 21 financial institution accounts and a Lamborghini Aventador SVJ Roadster.

Along with legal expenses of conspiracy, wire fraud, securities fraud, worldwide cash laundering and obstruction of justice, Guo was additionally sued by the Securities and Trade Fee.