Chinese mogul Guo Wengui found guilty of billion-dollar fraud
Guo Wengui, a Chinese businessman and outspoken opponent of the Chinese Communist Party, was found guilty of fraud exceeding one billion dollars by an American court. The verdict was delivered in a high-profile trial that revealed the extent of financial misconduct and Guo's connections with the American right wing.
The American judicial system charged Guo Wengui with nine counts, all of which were found to be valid. The court determined that the Chinese businessman engaged in financial fraud, money laundering, and extortion. This scheme lasted for five years, from 2018 to 2023, and relied on exploiting the trust of his fans.
Wengui, also known by the aliases Miles Guo, Miles Kwok, and Brother Seven, defrauded his supporters of over one billion dollars. These funds came from various investment programmes and cryptocurrency ventures that Guo promoted among his online community. However, the gathered funds were not used for their declared purposes.
Luxurious life at the expense of investors
Prosecutors demonstrated that Guo Wengui used the collected funds to finance his lavish lifestyle. Among the businessman’s luxurious purchases were a residence with an impressive area of over 4,600 square metres, a Lamborghini worth 825 thousand pounds, and a yacht valued at 31 million pounds. These extravagant expenditures starkly contrasted the promises made to investors.
In commenting on the verdict, Prosecutor Damian Williams emphasised the tragic fate of thousands of Guo's online followers who fell victim to his frauds. Their money allowed the Chinese businessman to lead a life far beyond his actual financial means.
It is noteworthy that Chinese authorities accused Guo of corruption and other offences. He fled to the United States at the end of 2014.
Political connections and influence in the USA
Wengui has been in detention since March 2023, when he was first charged. The Guo Wengui case gained notoriety due to the scale of the fraud and his connections with influential figures on the American political scene. Special attention is drawn to his collaboration with Stephen Bannon, former chief strategist in President Donald Trump’s administration. This relationship contributed to Guo’s popularity among the American right wing and the Chinese diaspora in Western countries.
Wengui and Bannon collaborated on several projects, including the "New Federal State of China" campaign, aimed at toppling the Chinese Communist Party. Their joint internet appearances attracted hundreds of thousands of followers. It is worth noting that Bannon was arrested in 2020 in connection with another fraud case, while aboard a yacht belonging to Guo.
Guo Wengui’s defenders attempted to portray him as a political activist whose actions aimed to criticise the Chinese political system. They argued that his ostentatious lifestyle was a form of protest against the Chinese Communist Party. However, these arguments did not convince the jury, which found Guo guilty of the charges brought against him.
The announcement of Guo Wengui’s sentence is scheduled for 19 November.
