Who is Miles Guo? Exiled Chinese businessman gets 30 years in US prison over $1 billion fraud

Announcing the sentencing, the U.S. Attorney's Office said in a statement: "Attorney for the United States, Sean S. Buckley, Acting under Authority Conferred by 28 U.S.C. § 515, announced that MILES GUO, a/k/a 'Ho Wan Kwok,' a/k/a 'Guo Wengui,' a/k/a 'Brother Seven,' a/k/a 'The Principal,' a/k/a 'Boss,' was sentenced yesterday by U.S. District Judge Analisa Torres to 30 years in prison for racketeering conspiracy, conspiracy to commit wire fraud, securities fraud, money laundering, and other charges."

The statement added that Guo led "an expansive and complex scheme" that fraudulently solicited more than $1 billion from thousands of his online followers through false promises, deceptive investment opportunities, and widespread misrepresentations.

Guo was convicted on July 16, 2024, following a seven-week jury trial.

According to prosecutors, court filings, and evidence presented during the trial, Guo's fraudulent activities began in 2018 when he announced the creation of the Rule of Law Foundation and the Rule of Law Society. He falsely claimed that he would contribute the first $100 million to the organizations, using their purported charitable mission to attract supporters and investors.

Leveraging the credibility of these organizations, Guo launched an unregistered stock offering for his media venture, GTV. After the offering came under scrutiny from the U.S. Securities and Exchange Commission (SEC), he and his associates shifted to other fraudulent fundraising schemes.

One such program raised another $100 million by promising investors they could lend money to networks of Guo's supporters in exchange for interest payments and GTV stock.

Prosecutors said Guo also raised approximately $240 million through G|CLUBS, a membership program that promised GTV shares in return for membership fees while offering little or no meaningful benefits.

In 2021, during a broadcast on GTV, Guo launched the Himalaya Exchange, promoting it as a cryptocurrency ecosystem featuring "H Coin" and "H Dollar." Prosecutors said the assets were falsely marketed as blockchain-based cryptocurrencies but were, in reality, little more than fabricated figures maintained on an internal company spreadsheet.

Authorities said Guo sustained the fraud for nearly five years by installing figurehead executives to oversee companies he secretly controlled, falsely guaranteeing investors against financial losses, and repeatedly making misleading claims about the value of his ventures, including a fabricated gold reserve that he claimed backed his digital assets.

According to the U.S. Attorney's Office, Guo and his family used investors' money to finance an extravagant lifestyle, purchasing a $26.5 million mansion in New Jersey, an $832,000 Lamborghini, two multimillion-dollar sports cars for his son, a $2 million yacht, and numerous other luxury items.

Between 2022 and 2023, U.S. authorities seized more than $630 million in criminal proceeds, along with luxury vehicles, the New Jersey mansion, expensive furniture, and other high-value assets.

In addition to the 30-year prison sentence, the 55-year-old, originally from the People's Republic of China, was ordered to pay a $900 special assessment.

The court also ordered Guo to forfeit approximately $889 million in proceeds from the fraud, along with several luxury assets, including the New Jersey mansion, a Lamborghini, a Rolls-Royce Phantom, and a Bugatti sports car.

"Miles Guo led a massive scheme to steal more than $1 billion through lies and deception from thousands of Americans and victims around the world," Acting U.S. Attorney Sean S. Buckley said.

"After immigrating to this country, rather than being satisfied with the many legitimate opportunities afforded to him, Guo exploited the trust that thousands had placed in him for his own greed. This sentence shows that fame and wealth do not place you above the law, and that fraudsters who victimize families to enrich themselves will be met with significant consequences."