Chinese business tycoon convicted of defrauding followers in $1bn scheme

Guo Wengui, a self-exiled Chinese business tycoon whose criticism of the Communist party won him legions of online followers and powerful friends in the American conservative movement, was convicted by a US jury on Tuesday of engaging in an enormous multi-year fraud that ripped off some of his most devoted fans.

Once believed to be among the richest people in China, Guo was arrested in New York in March 2023 and accused of operating a racketeering enterprise that stretched from 2018 through 2023.

Over a seven-week trial, he was accused of deceiving thousands of people who put money into bogus investments, with the aim of preserving a luxurious lifestyle. He was convicted of nine of 12 criminal counts, including racketeering conspiracy.

Guo’s lawyers said prosecutors had not proven he had cheated anyone.

Guo, who is also known by the name Miles Kwok, left China in 2014 during an anti-corruption crackdown that ensnared people close to him, including a top intelligence official.

Chinese authorities accused Guo of rape, kidnapping, bribery and other crimes, but Guo said those allegations were false and designed to punish him for publicly revealing corruption as he criticized leading figures in the Communist party.

He applied for political asylum in the US, moved to a luxury apartment overlooking Central Park and joined Donald Trump’s Mar-a-Lago club in Florida.

While living in New York, Guo developed a close relationship with Trump’s former onetime political strategist, Steve Bannon. In 2020, Guo and Bannon announced a joint initiative to overthrow the Chinese government.

Prosecutors say hundreds of thousands of people were convinced to invest more than $1bn in entities Guo controlled. Among those businesses and organizations was Guo’s media company, GTV Media Group Inc, and his so-called Himalaya Farm Alliance and the Himalaya Exchange.

In a closing argument, assistant US attorney Ryan Finkel said Guo “spouted devious lies to trick his followers into giving him money”.

He said Guo made hundreds of broadcasts and videos in which he promised followers that they would not lose money if they invested with him.

“I’m rich. I’ll take care of you,” the prosecutor said Guo told them.