Guo Wengui indicted on charges of participating in $1 billion fraud conspiracy

Photo: Wall Street Journal (Fair Use)

Guo Wengui, a Chinese businessman in exile, has been charged by federal prosecutors in Manhattan for defrauding investors of hundreds of millions of dollars to fund the purchase of extravagant assets such as a large mansion and a luxury yacht measuring 145 feet.

Guo Wengui, who also goes by the name Kwok Ho Wan, was taken into custody in New York on Wednesday and has been indicted on 11 counts of fraud and money laundering, according to a newly unsealed indictment in federal court, the Wall Street Journal reported.

Prosecutors allege that he masterminded a $1 billion fraud scheme that targeted hundreds of thousands of his online followers, persuading them to buy stock in his media company, invest in a farm loan program, and join a luxury-services club.

The Manhattan U.S. attorney’s office has charged Kin Ming Je, a financier also known as William Je, with 12 counts, including fraud, money laundering, and obstruction of justice, in connection with the alleged scheme.

Je, who is currently at large, was accused of conspiring with Guo Wengui to defraud investors, as reported by the Wall Street Journal.

According to prosecutors, Guo Wengui and Kin Ming Je are accused of deceiving investors by making false promises of high returns in 2018, while misrepresenting how the raised funds would be utilized.

They allegedly diverted $100 million from the media company, GTV Media Group Inc., which they claimed to be raising funds for, to a high-risk hedge fund.

Written by staff