Chinese Billionaire Who Infiltrated American Politics Sentenced For Fraud

Chinese businessman, right-wing media mogul, and real estate tycoon Miles Guo has been sentenced to 30 years in prison for defrauding his followers of more than $1 billion. 

Guo, who also used the names “Ho Wan Kwok,” “Guo Wengui,” “Brother Seven,” “The Principal,” and “Boss,” was convicted of racketeering, securities fraud, money laundering, and defrauding donors and investors.

Guo’s federal judge, Analisa Torres, said on Monday that Guo had “preyed on people seeking to bring democracy to China,” causing them “substantial financial and emotional harm.”

His fraud schemes began when he lured donors into his Rule of Law Foundation and Rule of Law Society by falsely claiming he was contributing the first $100 million himself. He also released stock in his media venture, GTV, which gained scrutiny from the Securities and Exchange Commission. 

Guo was also involved in a scheme in which victims were told they could lend money to networks of Guo’s supporters and receive GTV stock and interest, a venture that allegedly netted him $100 million. He also sold $250 million in memberships to G|CLUBS, which also promised GTV stock but provided few tangible benefits.

Another fraud scheme Guo was convicted of was launching a cryptocurrency ecosystem called “Himalaya Exchange,” where people could trade “H Coin” and “H Dollar.” The court proceedings revealed that the cryptocurrencies were not based on a blockchain at all but merely numbers manipulated on an internal spreadsheet.

With the money he took from Americans and foreign investors, Guo reportedly bought estates in New Jersey and Connecticut, a $4.4 million Bugatti supercar, a $1 million Lamborghini, and a $37 million yacht, the Associated Press reported.

“After immigrating to this country, rather than being satisfied with the many legitimate opportunities afforded to him, Guo exploited the trust that thousands had placed in him for his own greed,” U.S. Attorney Sean S. Buckley said in a statement. “This sentence shows that fame and wealth do not place you above the law, and that fraudsters who victimize families to enrich themselves will be met with significant consequences.”

Federal prosecutors likened the scale of Guo’s schemes to that of the famous fraudster Bernie Madoff.

Guo went from poverty to an estimated net worth of $2.6 billion by investing in real estate during the construction boom leading up to the 2008 Beijing Olympics. He was ranked as China’s 74th richest man and owned a sprawling $230 million lakeside courtyard in Beijing, according to The New York Times.

Guo secured majority control of a securities business by buying a stake in a state-owned company through Chinese senior intelligence official Ma Jian. However, when a Chinese campaign aimed at stamping out waste, fraud, and abuse jailed Ma, Guo realized he was at risk and fled China in 2015.

During his time in the United States, Guo made friends and connections in the American Right. He joined President Trump’s Mar-a-Lago golf club. He also partnered with Trump supporter Steve Bannon to launch anti-CCP ventures such as GTV Media and declared the New Federal State of China to be the self-proclaimed sovereign government of China. Guo also promoted Bannon’s podcast on his Chinese-language media network.

Guo’s network was the first to expose the Hunter Biden laptop scandal, the New York Times reported. He also released a No. 1 iTunes hit song, “Take Down the CCP.”

Beijing welcomed the conviction of Guo.

“Guo Wengui is a fugitive wanted under an Interpol Red Notice issued at the request of the Chinese government,” Chinese Foreign Ministry spokesperson Guo Jiakun said in a press briefing Tuesday.

Throughout the case, Guo has maintained his innocence, stating that he fled to the United States not to escape a fraud conviction but to “destroy the CCP,” according to an AP news report. 

Guo has insisted that his business dealings have harmed no one. His attorneys have stated that the conviction is part of the CCP’s “grand, pervasive, and life-threatening” pursuit of him and stated that Guo’s conviction would merely “embolden further efforts to eliminate Chinese dissidents from public life.”

Judge Torres said Guo’s assets will be liquidated, with the proceeds used to reimburse hundreds of his victims.