Guo Wengui, who once revelled in his reputation as one of China’s richest men, was sentenced to 30 years in a US jail on Tuesday for running a billion-dollar scam that prosecutors said was bankrolled by followers he had cultivated as a critic of the Communist Party.
The former property tycoon fled China for the US in 2017, after being accused by top Chinese officials of corruption. But rather than lie low, he reinvented himself as an outspoken opponent of Beijing, building a loyal online following among the Chinese diaspora.
“Chinese tycoon Guo Wengui sentenced to 30 years in US for defrauding followers of $1bn”
That following became a cash cow. Between 2018 and 2023, prosecutors said, Guo raised more than $1bn (£760m) from online followers who invested in his cryptocurrency and other schemes. The money, they argued, was not used for political activism – as Guo claimed – but to fund a lifestyle that included a 50,000 sq ft mansion, a $1m Lamborghini and a $37m yacht.
New York court judge Analisa Torres said Guo had “preyed on those seeking to bring democracy to China”, taking their money to fund his lavish living. Guo was convicted on charges of racketeering, fraud and money laundering.
His lawyer, Melinda Sarafa, called the sentence “excessive” and said it failed to take into account thousands of investors who have said they were not defrauded. Guo maintains his innocence and will appeal, Sarafa told the BBC.
Attorney for the US Sean Buckley struck a different note. “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 said. “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.”
The sentencing courtroom was packed with Guo’s supporters. Guo, who also goes by Miles Guo and Ho Wan Kwok, had built ties with other China critics, including Steve Bannon, a former adviser to US President Donald Trump. Bannon and Guo 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. Bannon pleaded guilty to a first degree scheme to defraud charge in an unrelated case and received a conditional discharge.
Before fleeing China, Guo had built a fortune as a property developer and had good ties with the country’s government. But his fall from grace was swift, and his self-styled role as a democracy advocate has now landed him in a US prison for three decades.