US Arrests Chinese Tycoon for Fraud: $1 Billion Used for Luxury Yacht and Bugatti | Abroad
The US Attorney’s Office on Wednesday arrested Chinese businessman Guo Wengui in New York. He is believed to have used a billion dollars collected from his social media followers not to invest in his media company, but to pay for his luxury yacht, a bespoke Bugatti sports car and a lavish home, among others.
Guo is also known as Miles Guo, Miles Kwok and “Brother Seven”. He came to the United States in 2017 and requested political asylum because he would be persecuted by the Chinese Communist Party. Guo has become known in America for his criticism of China and his collaboration with Steve Bannon, the former strategist for former President Donald Trump.
According to the US prosecution’s indictment, Guo, along with another partner, raised $1 billion (950 million euros) from his online followers. They mirrored these investors to use the money for, among other things, its GTV Media group and the creation of an exclusive club for members. However, the money was allegedly misappropriated, including by Himalaya Coin, his cryptocurrency company.
The money was reportedly used to maintain a $37 million luxury yacht, a New Jersey mansion and a $4.4 million custom Bugatti sports car. A total of $634 million was found in 21 bank accounts.
Guo is said to have been one of the richest men in China when he fled that country. He earned hundreds of millions of dollars as a real estate developer. In the United States, he founded several foundations with which he criticized the Chinese government. He also made headlines for spreading false rumors about the coronavirus.
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