US Charges China's Guo Wengui With $1B Fraud

The U.S. government on Wednesday charged exiled Chinese businessman Guo Wengui with fraud, accusing him of leading a complex conspiracy to defraud his online followers out of more than $1 billion.

The U.S. Department of Justice said Guo and his financial adviser Kin Ming Je conducted a series of offerings targeting investors who were aligned with Guo's policy objectives in China and inclined to believe the self-proclaimed billionaire's statements about investing.

Authorities said Guo diverted some money he raised to enrich himself and his family, including to buy a $37 million yacht, a $3.5 million Ferrari for his son, and two $36,000 mattresses.

The Justice Department also said it has seized $634 million of alleged fraud proceeds and some assets purchased with alleged fraudulent proceeds, including a Lamborghini Aventador.

A lawyer for Guo did not immediately respond to a request for comment. Je is at large. Guo was arrested on Wednesday morning in New York.

Guo, 52, faces 11 criminal counts, including securities fraud, wire fraud, and money laundering charges.

The U.S. Securities and Exchange Commission filed related civil charges.

Guo is a prominent critic of China's Communist Party. He left the country in 2014 after being accused there of bribery and money laundering. He has denied wrongdoing.