Exiled Chinese businessman Miles Guo allegedly defrauded his followers of over $1 billion after Chinese authorities confiscated his property, a federal prosecutor claimed on Friday as Guo’s fraud trial commenced in New York.
Assistant U.S. Attorney Micah Fergenson addressed the jury, explaining that Guo, originally a real estate developer in China, moved to New York and gained a significant online following through videos criticizing the Chinese government.
Following the seizure of his assets by authorities in China and Hong Kong, Guo began promoting fraudulent investments to his followers, Fergenson stated.
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“Miles Guo orchestrated a straightforward but massive con. He maintained a billionaire’s lifestyle using money he deceitfully obtained from his followers,” Fergenson said.
The Manhattan jury of 12 is set to deliberate on allegations that Guo exploited his extensive online presence and hundreds of thousands of followers to amass funds, which he then used for personal luxury.
Known by several names including Guo Wengui, Miles Kwok, and Ho Wan Kwok, Guo has been detained in Brooklyn since his arrest in March 2023.
In her opening statement, Guo’s attorney Sabrina Shroff contended that his businesses were legitimate, aiming to establish a movement against the Chinese Communist Party.
“It wasn’t a gamble, a scheme, or a con. It was none of those,” she argued.
Shroff explained that many of Guo’s actions, such as having multiple phones and bank accounts, were sensible precautions given the ongoing attempts by the Chinese government to hinder his activities in the U.S.
The defense lawyer also urged the jurors not to judge Guo based on his expenditure of the substantial wealth he accrued through real estate.
Starting in 2018, prosecutors allege, Guo promoted financial opportunities in Mandarin-language online videos, offering investments in his media company, a supposed cryptocurrency venture, a farm loan program, and memberships in what he claimed was an exclusive club providing concierge services.
Prosecutors claim Guo misappropriated the funds to purchase a New Jersey mansion, a yacht, several luxury cars, and other indulgences, including two $36,000 mattresses.
Guo is facing 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.
Guo, a vocal critic of Beijing, has been associated with Steve Bannon, a former adviser to ex-President Donald Trump.
Bannon was arrested in 2020 aboard Guo’s $37 million yacht, the Lady May, in connection with a separate fraud case. That case concluded with Trump pardoning Bannon in the final hours of his presidency. Bannon had pleaded not guilty.
Guo fled China in 2014 amidst President Xi Jinping’s anti-corruption campaign. Chinese officials accused him of bribery, money laundering, and other crimes, charges that Guo denies.
After relocating to the United States, Guo purchased a home in the luxurious Sherry-Netherland building on Manhattan’s Fifth Avenue and garnered a devoted following through his outspoken criticism of China’s government, including allegations of corruption against its leaders.
In April 2017, at Beijing’s request, Interpol issued a “red notice” for Guo’s arrest.
On Friday, Shroff argued in court that the notice was an effort to silence Guo following his interview with U.S. government-funded Voice of America.
