Exiled Chinese businessman Miles Guo scammed his followers out of over $1 billion after Chinese authorities seized his property, a federal prosecutor stated on Friday as Guo’s fraud trial commenced in New York.
Assistant U.S. Attorney Micah Fergenson informed the jury that Guo, a former real estate developer in China who relocated to New York, gained an 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 explained.
“Miles Guo ran a simple con on a grand scale. He lived a billionaire’s lifestyle using money he stole from people he tricked and cheated,” Fergenson stated.
The jury will evaluate allegations that Guo exploited his online presence and extensive following to generate funds for personal use.
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.
Guo’s attorney, Sabrina Shroff, argued in her opening statement that his businesses were legitimate and aimed at building a movement against the Chinese Communist Party.
“It was not a bet, it was not a scheme.
It was not a con. It was none of those things,” she asserted. Shroff noted that many of Guo’s actions, such as owning multiple phones and bank accounts, were protective measures against continued disruptions by the Chinese government.
From 2018, prosecutors allege Guo promoted financial opportunities in Mandarin-language videos, offering investments in his media company, a purported cryptocurrency venture, a farm loan program, and membership in an exclusive concierge services club.
Prosecutors claim Guo misappropriated funds to purchase 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, could extend into July.
A critic of Beijing, Guo has associated with former U.S. President Donald Trump’s adviser Steve Bannon.
Bannon was arrested in 2020 on Guo’s $37 million yacht, the Lady May, in a separate fraud case that ended with a pardon from Trump.
Guo fled China in 2014 amid an anti-corruption crackdown and has denied accusations of bribery, money laundering, and other crimes by Chinese officials.
After moving to the U.S., Guo purchased a home in Manhattan’s luxury Sherry-Netherland building and gained a following through his anti-China rhetoric. Interpol issued a “red notice” for Guo’s arrest in April 2017 at Beijing’s request.
Shroff contended in court that the notice aimed to silence Guo following his interview with Voice of America.