Chinese Entrepreneurs Go on a Spree in the US from Bodong Investment Proceeds

Guo not only cheated and went on a spree, he declared himself a representative of China's shadow government.

AP PHOTO/ANDY WONG

Screen capture archives from the Twitter account of Chinese businessman, Guo Wengui, were seen on a computer screen in Beijing, China, on August 30, 2017. Guo is facing trial in the United States on May 24, 2024 on charges of fraud.

Guo Wengui (57), rich businessman from China who exiled himself to United States, became a sensation after being caught cheating on a spree. With investment promises that turned out to be fake, Guo made a fortune of up to 1 billion US dollars (around Rp. 16 trillion).

This was revealed in the trial of the fraud case in a New York court, Friday (24/5/2024) afternoon local time or Saturday (25/5/2024) early morning Indonesian time. “Guo committed massive fraud against many people for the sake of extravagance,” said Assistant District Attorney Micah Fergenson.

To his followers on social media, Guo promised that they could become rich through investments. Apparently, the funds collected were used to finance a glamorous lifestyle. Prosecutors said that Guo's and his family's assets also included a $70 million apartment in Central Park, two luxurious cruise ships, a 15,000 square meter mansion, luxury cars worth a total of $60,000, and even a $35,000 mattress (Rp 561 million).

Also read: Chinese Crime Syndicates Spread to Southeast Asia

Guo moved from China to the United States in 2014. At that time, the Chinese government was carrying out a campaign to eradicate corruption. Many officials who were Guo's acquaintances ended up in jail.

AP PHOTO/ELIZABETH WILLIAMS

Courtroom sketches feature Guo Wengui (sitting in the middle) and his lawyer, Tamara Giwa (on the left), during a federal court hearing in New York, USA, on March 15, 2023.

After leaving China, Chinese authorities accused Guo of several crimes, including rape, kidnapping, bribery, and money laundering. Guo rejected those accusations, claiming they were used to punish him for exposing corruption and criticizing the Communist Party leaders.

Fergenson revealed that after authorities in China and Hong Kong confiscated his assets in response, Guo started the fake investment business. Starting in 2018, Guo promised financial profits in the property or crypto asset sector through online videos in Mandarin.

He offers investments in his media company, a cryptocurrency joint venture, an agricultural loan program, and exclusive membership in a club with special services. He is known by several names, including Guo Wengui, Miles Kwok, and Ho Wan Kwok.

Guo committed massive fraud against many people for the sake of extravagance.

In 2017, he caused a sensation on the internet and angered the Chinese Government by creating an anti-People's Republic of China movement. He made a video that was circulated on social media to show the Chinese people that there is an alternative outside their country. He recruited members of the movement from China and asked them to pay membership fees.

The May 22, 2024 edition ofThe New York Times newspaper reported that in 2020, Guo declared China's shadow government at a banquet on his yacht. He appointed himself as the government's ambassador. ”The Chinese Communist Party is not a legitimate government!” Guo shouted in Mandarin to cheers from the audience.

AFP/ANDREW CABALLERO-REYNOLDS

Steve Bannon, former political advisor to US President Donald Trump from 2017-2021, left the federal district court in Washington DC, USA, on November 15, 2021.

While living in New York in recent years, Guo developed a friendship with Steve Bannon, former political advisor to 2017-2021 US President Donald Trump. Bannon and another Trump political adviser, Pete Navarro, also appeared as witnesses at the shadow government's declaration.

On Guo's cruise ship in 2020, Bannon was arrested in a separate fraud case. The case ended when Trump pardoned Bannon towards the end of his term. Bannon declared himself not guilty.

Guo was arrested by police in New York in March 2023 on charges of fraud. He faces 12 charges, including fraud, extortion, conspiracy, and money laundering. The trial, led by District Judge Analisa Torres, is expected to be delayed until July 2024.

Also read: China Acts to Encourage Hedonistic Bankers and Officials to Change Their Lifestyles

Guo's lawyer, Sabrina Shroff, stated that the allegations against her client are fabricated and her client is not guilty of any of the charges. "My client has been wealthy since he was in China. He and his siblings have a successful property business. He does not need to cheat to support himself," she said.

Shroff said that the trial's progress will "surprise and open eyes." He warned the jurors not to be influenced by Guo's wealth in making their decision. "It is easy for someone to judge someone else as superficial or wealthy. That does not necessarily mean they are guilty," he said.

KOMPAS/LUKI AULIA

The atmosphere after the closing of the 20th National Congress of the Communist Party of China at the Great Hall of the People, Sunday (23/10/2022).

According to Shroff, Guo's business is legitimate. Its purpose is to build a movement against the Communist Party of China. Many of Guo's actions, such as owning multiple phones and bank accounts, are reasonable given that the Chinese government continues to disrupt his business in the US. "It is not gambling, not a scheme (fraud). Not at all," he said.

He added that Guo even received threats from the Chinese Government. At the request of Beijing, in 2017 Interpol issued an arrest warrant for Guo. Shroff stated that the notice was issued to silence Guo after he was interviewed by the US media, Voice of America.

The Guo trial was attended by 12 jurors. They will confer to determine whether Guo is guilty of the charges against him or not. (AP/Reuters)