Miles Guo, a Chinese businessman and media mogul, has been sentenced to 30 years in prison for defrauding investors of over $1 billion. Guo, also known by several aliases including Ho Wan Kwok and Guo Wengui, was convicted of charges including racketeering, securities fraud, and money laundering. U.S. District Judge Analisa Torres stated that Guo exploited individuals seeking to promote democracy in China, resulting in significant financial and emotional harm to his victims.
Guo's fraudulent activities included misleading donors to his Rule of Law Foundation and Rule of Law Society, claiming he would contribute $100 million. He also faced scrutiny from the Securities and Exchange Commission for issuing stock in his media venture, GTV. Additionally, he was involved in a scheme where victims were promised GTV stock in exchange for loans, which reportedly earned him $100 million. Guo sold $250 million in memberships to G|CLUBS, which offered limited benefits.
Another scheme involved a cryptocurrency platform called Himalaya Exchange, where it was revealed that the cryptocurrencies were not based on blockchain technology but were manipulated numbers on a spreadsheet.
Guo used the funds from these schemes to purchase luxury items, including estates in New Jersey and Connecticut, a Bugatti supercar, a Lamborghini, and a yacht valued at $37 million. U.S. Attorney Sean S. Buckley commented that Guo's actions demonstrated a betrayal of trust and emphasized that wealth does not exempt individuals from legal consequences.
Federal prosecutors compared Guo's fraudulent activities to those of Bernie Madoff. Guo, who once had an estimated net worth of $2.6 billion, fled China in 2015 amid concerns over a crackdown on corruption. In the U.S., he formed connections with right-wing figures, including Steve Bannon, and promoted anti-CCP initiatives.
Beijing welcomed Guo's conviction, with a Chinese Foreign Ministry spokesperson noting that he is a fugitive wanted by China. Throughout the trial, Guo maintained his innocence, claiming his actions were aimed at opposing the Chinese Communist Party. Judge Torres ordered the liquidation of Guo's assets to compensate his victims.