Guo Wengui is a Chinese billionaire. He was previously convicted in New York on July 16 of fraud and other charges for allegedly defrauding investors of more than $1 billion. Judge Analisa Torres will sentence him on November 19.

On March 15, 2023, Guo Wengui was arrested by federal authorities in New York on charges of conspiring to defraud his online followers of more than $1 billion. This included $452 million in unregistered offerings and a $150 million GTV loan, in addition to a $250 million membership program and a $262 million cryptocurrency project for Himalayan Exchange. He faces 12 criminal charges, including wire fraud, securities fraud, bank fraud and money laundering. Nine of these charges were found to be substantiated, and when sentenced on November 19, Guo could face up to 20 years in prison.

During a previous trial in this case, Manhattan’s top federal prosecutor, Damian Williams, noted that defendant Guo Wengui promised his followers via social media that they would not suffer financial losses if they participated in his investment and cryptocurrency plans. This promise allowed Guo to quickly and illegally raise over $1 billion between 2018 and 2023. Additionally, Guo committed a series of interrelated fraudulent acts to defraud his loyal fans of their funds. These funds were used for seemingly legitimate corporate activities, but in reality the company was a startup with no profitable operations or revenue. Guo embezzled these funds for lavish expenses for himself, his partners, and his family. Guo’s expenses included the purchase of a 50,000-square-foot mansion in New Jersey, a red Lamborghini sports car worth $1 million, and a $37 million luxury yacht.

According to prosecutors, a series of evidence was provided to prove that Guo Wengui transferred funds provided by investors through a series of accounts. In an audio recording made secretly by a cooperating witness. Guo Wengui yelled at his subordinates for refusing to transfer 100 million dollars as quickly as possible to accounts he controlled. The funds came from investors in a membership company called G|Clubs, which Guo Wengui publicly claimed he did not control. When a subordinate suggested that Guo get board approval to make the transfer appear more legitimate, Guo told the subordinate, “You bastard, get out of here.” Prosecutors have also named Bannon and other associates of Guo Wengui as co-conspirators in the case, although they have not been charged. Bannon helped Guo start some of the companies involved in his fraudulent scheme, publicly promoted them, and even advised Guo on how to set them up to avoid SEC scrutiny.

The victims had been promised a good return on their investments. Additionally, Guo promised investors a variety of luxurious benefits, such as vacation discounts and access to exclusive events. Despite a steady stream of huge sums of money flowing into Guo’s companies and his foundation, he declared bankruptcy last year with less than $100,000 in personal assets, and Guo’s network collapsed. “We had complete trust in him, but little by little we realized that he never kept his promises,” the victims said.

This content is brought to you by the FingerLakes1.com team. Support our mission by visiting www.patreon.com/fl1 or learn how to send us your local content here.