Exiled Chinese tycoon gets 30 years in prison for billion-dollar fraud

[NEW YORK] Exiled Chinese tycoon Miles Guo, who promoted himself as a crusader against the Chinese government, was ordered to spend 30 years in a US prison for duping investors out of US$1 billion.

Guo, also known as Guo Wengui, was sentenced on Monday (Jun 29) in federal court in Manhattan, almost two years after a jury convicted him of defrauding online followers attracted by his criticisms of the Chinese government. Guo sold them supposed investment opportunities but instead spent their money on a lavish lifestyle that included a 152-foot superyacht and a penthouse at the Sherry-Netherland on Fifth Avenue.

US District Judge Analisa Torres, who presided over Guo’s two-month trial and handed down the sentence, faulted him for causing his victims “great financial and emotional harm” and for stealing money intended for pro-democracy causes to fund an “extravagant lifestyle”.

“Guo preyed on people who sought to bring democracy to China,” Torres said.

The courtroom was packed for the hearing, with many supporters of Guo, who continues to claim he’s not guilty. They cheered for him as he was taken away.

Federal prosecutors had asked that Guo get at least 30 years in prison, arguing that many of his victims lost their life savings. Guo asked for “substantially below” that, without naming a specific sentence. In addition to the time behind bars, Guo was ordered to forfeit US$889 million in gains from the illegal scheme.

Flaunted wealth

At his 2024 trial, Guo’s defence team raised his political activism in arguing that he flaunted his wealth as a way to tweak China’s leaders. One of his lawyers, Melinda Sarafa, cited his “unwavering support” for democracy in China and a better life for its citizens.

“Miles Guo is not a political activist,” Assistant US Attorney Ryan Finkel countered. “He is a scammer and a thief.”

The sentencing hearing started several hours late, after Guo’s arrival at the courthouse was delayed. In the hearing, Guo addressed Judge Torres, through an interpreter, only to refute a claim by Finkel that he had faked an illness to postpone his sentencing. Guo told the judge he had fainted early in the morning in his cell and was later vomiting blood.

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The judge also held a closed-door hearing on an undisclosed matter before the sentencing hearing. Denied bail as a flight risk, Guo has already been in custody for more than three years, time that will be credited against his sentence.

“He continues to maintain his innocence and plans to appeal,” Joshua Dratel, one of his lawyers, said after the hearing.

Guo’s reputation as an opponent of the Chinese government attracted a number of US political figures into his orbit, perhaps most notably Steve Bannon, a podcast host who served as a senior White House adviser during President Donald Trump’s first term.

In 2020, Bannon was aboard Guo’s yacht off the coast of Connecticut when he was arrested on his own fraud charges. Trump later pardoned Bannon.

According to prosecutors, other Guo scams involved an exclusive private members-only club with a minimum US$10,000 buy-in, a crypto platform called the Himalaya Exchange and a farm loan programme.

In addition to his Manhattan penthouse, Guo also owned a historic 50,000-square-foot mansion in New Jersey. Prosecutors said he used investor funds to buy a US$1 million red Lamborghini for himself and a US$4 million Ferrari for his son. BLOOMBERG