A Chinese billionaire who fled to the US has been found guilty of multiple charges, including fraud and money laundering. Guo Wengui, once a real estate tycoon in China, built a scam worth billions in the US.
In June 2020, small planes flew over New York City with banners saying “Congratulations to the New Federal State of China” and a blue flag.
It seemed like a prank or strange propaganda, but a few days later, Guo and former White House strategist Stephen Bannon appeared online from a boat near the Statue of Liberty, declaring their opposition to the Chinese Communist Party.
Guo used his influence to scam thousands of Chinese dissidents living abroad. They thought they were investing in his businesses and cryptocurrency, but Guo and his partner, Kin Ming Je, spent the money on luxury items like expensive properties, a yacht, sports cars, and even a $140,000 piano.
Followers like Coco, a Chinese immigrant in the US, trusted Guo because of his anti-Chinese Communist Party stance. Coco invested $6,000 and joined protests organized by Guo, only to later realize he never fulfilled his promises. Some followers invested even more, with one friend giving over $100,000 to join Guo’s inner circle.
Despite raising vast sums, Guo declared bankruptcy last year, claiming less than $100,000 to his name. Born in 1970 in Shandong Province, Guo grew up in poverty and later became one of China’s richest people through property development.
He fled China in 2014 after a business dispute and accusations of bribery, kidnapping, fraud, and other crimes by Chinese authorities.
Guo built a following on social media by criticizing China’s leaders and alleging corruption. In 2017, he met Bannon, and they collaborated on various projects, including GTV, a media company.
Guo paid Bannon $1 million in consulting fees, and they frequently appeared on each other’s podcasts.
Guo’s followers took action online and offline, with some rallying outside the homes of his enemies, who were often other Chinese dissidents. Guo launched a “punishing the traitors” campaign, leading to death threats and harassment against his targets.
Guo’s network fell apart in March 2023 when US authorities charged him with fraud. He allegedly scammed 5,500 investors out of $452 million, claiming his company GTV was worth $2 billion when it had no revenue. The money was spent on luxury goods and services, including a $2.3 million yacht.
US authorities began investigating Guo and Bannon’s business activities, leading to allegations of misleading investors and a $539 million settlement with the Securities and Exchange Commission (SEC).
Guo was arrested for wire fraud, securities fraud, bank fraud, and money laundering in March 2023.
Despite the charges, Guo’s representatives claim the allegations are fabricated and politically motivated.
Bannon was not named in the indictment but has also faced legal troubles, including a four-month sentence for defying a congressional subpoena.
The BBC has provided a detailed look into Guo Wengui’s rise and fall, highlighting his fraudulent activities and the impact on his followers.
The story showcases how Guo’s manipulation and deceit led to a billion-dollar scam in the US .
Credit : BBC
https://www.bbc.com/news/world-us-canada-65019134