Guo Wengui, the Chinese tycoon who fled to the US and reinvented himself as a critic of Beijing, has been sentenced to 30 years in a New York jail for running a $1bn scam that preyed on followers seeking to bring democracy to China.
The former property developer, once one of China’s richest men, was convicted on charges of racketeering, fraud and money laundering after raising more than $1bn (£760m) from online supporters through investment and cryptocurrency schemes between 2018 and 2023.
“Guo Wengui sentenced to 30 years for running a $1bn scam that preyed on followers seeking democracy in China.”
Prosecutors said the money funded a lavish lifestyle that included a 50,000 sq ft mansion, a $1m Lamborghini and a $37m yacht. Guo denied the allegations, insisting the funds were used for political activism.
Sentencing him on Tuesday, US district judge Analisa Torres said Guo had “preyed on those seeking to bring democracy to China”, taking their money to bankroll his own extravagant life.
Guo’s lawyer, Melinda Sarafa, called the sentence “excessive”, arguing it failed to account for thousands of investors who have said they were not defrauded. “He maintains his innocence and will appeal his conviction and sentence,” Sarafa told the BBC.
The courtroom was packed with Guo’s supporters. He goes by several names, including Miles Guo and Ho Wan Kwok.
Attorney for the US Sean Buckley told the BBC: “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.” He added: “Today’s sentence shows that fame and wealth do not place you above the law, and that fraudsters who victimise families to enrich themselves will be met with significant consequences.”
Guo fled China for the US in 2017 after being accused by top Chinese officials of corruption. Before that, he had built a fortune as a property developer and enjoyed good ties with Beijing.
In exile, he cultivated a wide online following among the Chinese community in the US, branding himself a staunch critic of the Communist Party. He built ties with other China critics, including Steve Bannon, a former adviser to Donald Trump. The pair often appeared in online videos and, in 2020, launched a campaign called the New Federal State of China, with the goal of overthrowing the Chinese Communist Party.
Later that year, Bannon was arrested on Guo’s yacht in Connecticut on unrelated fraud charges. Bannon pleaded guilty to a first degree scheme to defraud charge and received a sentence of conditional discharge for three years.