Exiled Chinese businessman Miles Guo is accused of defrauding his followers of over $1 billion after Chinese authorities seized his assets, according to federal prosecutors at the start of his trial in New York. Assistant U.S. Attorney Micah Fergenson told jurors that Guo, once a prominent real estate developer in China, moved to New York and gained a large online following through his videos criticizing the Chinese government. Following the confiscation of his property in China and Hong Kong, Guo allegedly began promoting fraudulent investments to his followers.
The Alleged Fraud Scheme
“Miles Guo orchestrated a grand-scale con, living a billionaire’s lifestyle with money stolen from those he deceived,” Fergenson said. The 12-member jury will consider claims that Guo used his significant online influence to collect funds which he then diverted for personal use. Known by various names, including Guo Wengui, Miles Kwok, and Ho Wan Kwok, Guo has been detained in Brooklyn since his arrest in March 2023.
Defense’s Argument
Guo’s attorney, Sabrina Shroff, contended that his businesses were legitimate and aimed at building a movement against the Chinese Communist Party. “This was not a scam or a scheme,” she said, explaining that Guo’s actions, such as owning multiple phones and bank accounts, were precautions against Chinese government interference.
Prosecutors’ Claims
Beginning in 2018, prosecutors allege, Guo promoted financial opportunities through Mandarin-language online videos, including investments in his media company, a purported cryptocurrency project, a farm loan program, and membership in an exclusive concierge club. They claim he used the funds to buy a New Jersey mansion, a yacht, luxury cars, and other extravagances, including two $36,000 mattresses. Guo faces 12 counts of fraud, racketeering, conspiracy, and money laundering. The trial, presided over by U.S. District Judge Analisa Torres, is expected to continue into July.
Background and Connections
A critic of Beijing, Guo has been linked to former U.S. President Donald Trump’s advisor, Steve Bannon. Bannon was arrested on Guo’s $37 million yacht, the Lady May, in 2020 on unrelated fraud charges; he was later pardoned by Trump. Guo left China in 2014 amid President Xi Jinping’s anti-corruption crackdown and has denied allegations of bribery and money laundering levied against him by Chinese officials.
Political and Legal Implications
After relocating to the United States, Guo purchased a luxury residence on Manhattan’s Fifth Avenue and attracted a dedicated following through his anti-Beijing rhetoric. In April 2017, Interpol issued a “red notice” for his arrest at China’s request. Shroff argued that this was an attempt to silence Guo after he spoke to Voice of America.
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