United State accuses Chinese tycoon of billion-dollar fraud

• Guo Wengui and Kin Ming Je are accused of planning a billion-dollar swindle.
• Involving wire fraud, securities fraud, bank fraud, and money laundering.
• Hours after being detained, Mr. Guo’s Manhattan penthouse apartment caught fire.

A Chinese real estate magnate with a New York office has been accused by United State authorities of planning a billion-dollar swindle.

The charges against Guo Wengui and Kin Ming Je, one of his business associates, include wire fraud, securities fraud, bank fraud, and money laundering.

Mr. Guo is a supporter of former White House chief strategist Stephen Bannon and a critic of the Chinese government.

Hours after being detained, Mr. Guo’s Manhattan penthouse apartment caught fire.

The fire was put out, no injuries were recorded, and the reason is still being looked into, according to a city fire department official.

Mr. Guo claimed in an earlier online post that he spent over an hour being questioned while being shackled.

Then, on Wednesday, he entered a not guilty plea in front of a federal judge in Manhattan and was sentenced to house arrest without bond.

Mr. Guo goes by several aliases including Miles Guo, Miles Kwok and “Brother Seven”. He was named in the indictment unsealed Wednesday as Ho Wan Kwok.

According to the accusation, Mr. Guo and Mr. Je raised $1 billion (£830 million) from thousands of internet followers who believed they were financing media companies and a prestigious membership club.

They allegedly stole millions from investors using a cryptocurrency called Himalaya Coin as well.

Many of Mr. Guo’s internet followers are Chinese citizens living in Western nations as a result of his antagonism to the Chinese Communist Party and connections to prominent right-wing US politicians and activists.

According to the prosecution, he used his extensive online profile to raise money for his endeavors. However, it is claimed that the money was diverted into Mr. Guo and Mr. Je’s personal accounts rather than being used to fund company ventures.

The funds were used to purchase a 50,000 square foot (4,345 square metre) house in New Jersey, sports cars from Lamborghini, Bugatti, and Ferrari, as well as roughly $1 million worth of Chinese and Persian rugs.

According to the prosecution, $100 million was invested in a high-risk hedge firm, and additional funds were used to purchase opulent items such as a $140,000 piano, a $62,000 television, and a $53,000 fireplace log cradle holder.

The earnings from 21 different bank accounts were frozen by the US government beginning in September of last year, for a total of about $634 million.

According to the charge, Mr. Guo established two non-profit organizations to increase his support among CCP critics.

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