Billionaire Beijing critic charged with fraud in US

A mainland tycoon wanted at home and closely tied to Donald Trump's former adviser Steve Bannon has been arrested in New York and charged with bilking US$1 billion (HK$7.8 billion) from supporters of his anti-Beijing activities.

The US Justice Department accused Guo Wengui and British coconspirator William Je Kin Ming, who is still at large, of stealing funds in an investment scheme so they could buy luxuries, including a yacht, a 50,000-square-foot mansion and a US$4 million Bugatti.

Guo pleaded not guilty but consented to detention. Hours after his arrest at his Manhattan penthouse apartment, a fire broke out in his building, raising suspicions of a link to the inquiry.

Guo's arrest came nine years after the one-time property billionaire fled China in 2014, having faced charges of fraud and corruption even as he became an outspoken critic of the Chinese government.

Using his Cantonese name, Ho Wan Kwok, the Justice Department said Guo leveraged his prominence as a critic of President Xi Jinping's government while exiled in New York to build a large following of supporters online.

They were encouraged to donate to, or invest in, Guo-controlled organizations and businesses, including GTV Media, of which Bannon was a director.

Many of Guo's accusations against Chinese officials and influencers turned out to be false and he soon lost support from pro-democratic activists.

The Justice Department said Guo and Je diverted funds for their own use, including for Guo's New Jersey estate and two mattresses that cost US$36,000 each.

In 2021, US financial authorities called GTV's investment solicitation an illegal public offering and forced Guo to repay investors nearly US$500 million and pay nearly US$40 million in fines.

Since then authorities have seized around US$634 million in funds raised by Guo and Je. They charged them with multiple counts of securities fraud, wire fraud, money laundering and obstruction.

Guo arrived in the United States in 2015 after fleeing a crackdown on China's billionaires and corrupt officials. He was accused of paying bribes to a state intelligence and security chief.

He made a splashy arrival in the United States, buying a US$67.5 million Manhattan penthouse and promoting himself as persecuted by the Chinese government, and applying for political asylum.

In 2017 at Beijing's request, Interpol issued a red notice seeking Guo's arrest and extradition. But Trump's government did not take action, and in late 2017 Bannon began working with the tycoon.

In 2020 Bannon was arrested for defrauding donors while he was aboard Guo's US$35 million yacht.

In 2022 Guo violated a court order and moved his yacht out of the United States to avoid it being seized.

Chongqing businessman Je, 56, was a top executive at Australian firm Macquarie before he resigned in 2015 to became a director at many of Guo's companies.

He was a Chinese People's Political Consultative Conference member. He had lived in Hong Kong and was highly active in pro-establishment organizations, but he had gone low-profile after Beijing issued an arrest warrant on Guo.

Following the 2019 protests and the implementation of the national security law in 2020, Je moved to the UK and set up the Hong Kong People Association there.

Editorial: From self exile to US political pawn