Ajit Karn
According to The Wall Street Journal (WSJ), a New York federal magistrate denied bail to Chinese billionaire Guo Wengui on Thursday on fraud and money-laundering charges.
After being charged with fraud by the United States last month, the exiled businessman and vocal Beijing critic was denied parole. Guo fled China in 2014 during a crackdown against corruption led by President Xi Jinping.
Guo, who gained prominence by accusing Beijing of corruption from his Manhattan penthouse, was arrested and charged with a $1 billion fraud scheme last month, according to WSJ.
Guo and his financial advisor Kin Ming Je are accused of plotting to defraud tens of thousands of victims. According to the indictment, the two allegedly utilized more than USD 300 million of the proceeds for their own benefit and that of their families.
Media reported that Guo has pled not guilty and proposed a 24-hour guard and GPS monitoring at his wife’s residence in Connecticut.
The judge deemed his proposed bail insufficient, observing that he has filed for bankruptcy and has “the means and ability to flee.”
Media reported that US District Judge Analisa Torres ruled that prosecutors had demonstrated that Guo Wengui posed a risk of economic damage to the community if released and that he posed a high probability of eluding capture.
Torres added that Guo’s “obstructive behavior” in the criminal case — which included a false claim that he had only $10,000 in assets — as well as in civil and bankruptcy proceedings left her with no “reasonable assurance” that he would comply with any bond conditions.
Federal prosecutors in the Manhattan US attorney’s office alleged that he solicited investments in a cryptocurrency he created, a media company, and other ventures by taking advantage of the hundreds of thousands of followers he accumulated online.
The judge ruled that Guo’s proposed bail package – a USD 25 million bond, of which USD 5 million would be secured by cash or property – was “insufficient,” observing that he had filed for bankruptcy and claimed to have only USD 10,000 in assets.
Even though Guo offered to have his bond signed by two adults, including a relative, according to Torres, his family members have been accused of being “recipients of fraud proceeds.” Torres stated that Guo had not identified a co-signer with an adequate net worth and connections to the United States.
According to the WSJ, prosecutors allege he spent a portion of the proceeds on extravagant expenditures, including a USD 26 million home in New Jersey, a yacht, and a Ferrari.
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Guo was also a business associate of ex-Trump adviser Steve Bannon, who was detained in a 2020 fraud case while on Guo’s yacht. Bannon was subsequently pardoned by the former U.S. president.
