United States SEC Charged Exiled Chinese Billionaire Miles Guo Wengui & Financial Advisor William Je for $850 Million Unregistered Investment Fraud, Diverting $100 Million to Setup Hedge Fund, $40 Million Mansion & $3.5 Million Ferrari
18th March 2023 | Hong Kong
The United States Securities & Exchange Commission (SEC) has charged exiled Chinese billionaire Miles Guo Wengui & financial advisor William Je for $850 million unregistered investment fraud, including diverting $100 million to setup a hedge fund, $40 million for a mansion and $3.5 million for a Ferrari. United States SEC: “The Securities and Exchange Commission today charged exiled Chinese businessman Miles Guo and his financial advisor William Je for their involvement in unregistered and fraudulent offerings that raised more than $850 million. According to the SEC’s complaint, since April 2020, Guo, also known as Ho Wan Kwok, Miles Kwok, Wengui Guo, and Brother Seven, and his longtime financial advisor, Je, also known as Kin Ming Je, misappropriated a large portion of the funds raised from investors to enrich themselves and their family members, who are named as relief defendants. For example, in connection with a private placement offering of common stock in GTV Media Group, Inc. (GTV), Guo and Je allegedly diverted $100 million of investor funds to a hedge fund for the sole benefit of a company that is owned by Guo’s son. Additionally, Guo allegedly misappropriated investor proceeds in two other offerings to fund his and his family’s lifestyle, including misappropriating approximately $40 million to purchase and renovate a mansion in New Jersey and $3.5 million to purchase a Ferrari for his son.” Earlier in March 2023, UBS lost an appeal to the London Court of Appeal to dismiss a $500 million lawsuit by Chinese billionaire Guo Wengui & his firm Ace Decade, for UBS force-selling of a stock (Haitong Securities) for margin call during a market rout in 2015 which wiped out all his investment. In 2022, Guo Wengui had been ordered to pay $134 million to creditor Pacific Alliance Asia Opportunity Fund within 5 days or to face arrest for moving a yacht out of United States water to avoid creditor. See below for more info & United States SEC statement.
“ United States SEC Charged Exiled Chinese Billionaire Miles Guo Wengui & Financial Advisor William Je for $850 Million Unregistered Investment Fraud, Diverting $100 Million to Setup Hedge Fund, $40 Million Mansion & $3.5 Million Ferrari “
United States SEC Charged Exiled Chinese Billionaire Miles Guo Wengui & Financial Advisor William Je for $850 Million Unregistered Investment Fraud
United States SEC Charges Exiled Chinese Businessman Miles Guo and His Financial Advisor William Je in $850 Million Fraud Scheme
15th March 2023 – The Securities and Exchange Commission today charged exiled Chinese businessman Miles Guo and his financial advisor William Je for their involvement in unregistered and fraudulent offerings that raised more than $850 million.
According to the SEC’s complaint, since April 2020, Guo, also known as Ho Wan Kwok, Miles Kwok, Wengui Guo, and Brother Seven, and his longtime financial advisor, Je, also known as Kin Ming Je, misappropriated a large portion of the funds raised from investors to enrich themselves and their family members, who are named as relief defendants. For example, in connection with a private placement offering of common stock in GTV Media Group, Inc. (GTV), Guo and Je allegedly diverted $100 million of investor funds to a hedge fund for the sole benefit of a company that is owned by Guo’s son. Additionally, Guo allegedly misappropriated investor proceeds in two other offerings to fund his and his family’s lifestyle, including misappropriating approximately $40 million to purchase and renovate a mansion in New Jersey and $3.5 million to purchase a Ferrari for his son.
The SEC also charged Guo and Puerto Rico and New York-based G Club Operations LLC and New York-based Mountains of Spices LLC with violations of the registration provisions of the securities laws in connection with these offerings. A fourth offering, for which Guo alone is charged, raised hundreds of millions of dollars from investors through a crypto asset security referred to as “H-Coin,” “Himalaya Coin,” or “HCN” and a related purported stablecoin. In addition, since at least October 2021, Guo allegedly has made material misrepresentations to prospective investors in H-Coin, falsely stating that 20 percent of H-Coin’s value was backed by gold and that he would personally compensate investors for any potential losses.
“We allege that Guo was a serial fraudster, who raised more than $850 million by promising investors outsized returns on purported crypto, technology and luxury good investment opportunities,” said Gurbir S. Grewal, Director of the SEC’s Division of Enforcement. “In reality, Guo took advantage of the hype and allure surrounding crypto and other investments to victimize thousands and fund his and his family’s lavish lifestyle.”
The SEC’s complaint seeks permanent injunctions against Guo and Je, disgorgement of ill-gotten gains, civil penalties, and officer and director bars. The SEC’s complaint also seeks a conduct-based injunction that prohibits Guo from participating in the issuance, purchase, offer, or sale of any securities, including crypto asset securities, other than for his own personal accounts.
In a parallel action, the U.S. Attorney’s Office for the Southern District of New York today announced charges against Guo and Je. In a related matter, in September 2021, the SEC charged GTV and two other entities with conducting an illegal unregistered offering of the company’s common stock and GTV and its parent company with an illegal unregistered offering of a crypto asset security referred to as either G-Coins or G-Dollars. The SEC subsequently collected more than $454 million in disgorgement, prejudgment interest, and penalties, including approximately $70 million previously transferred to the hedge fund discussed above, from GTV and two other charged entities. The SEC is distributing the funds collected to harmed investors.
The SEC’s continuing investigation is being conducted by William Conway, Amanda Rios, Kerri Palen, Daniel Loss, and Sandeep Satwalekar. The case is being supervised by Thomas P. Smith, Jr. The SEC’s litigation will be led by Mr. Loss, Mr. Conway, and Ms. Rios. The SEC appreciates the assistance of the U.S. Attorney’s Office for the Southern District of New York, the FBI, and multiple international regulators.
UBS Lost Appeal to London Court of Appeal to Dismiss $500 Million Lawsuit by Chinese Billionaire Guo Wengui & His Firm Ace Decade, UBS Force-Sell Haitong Securities in Margin Call During 2015 Market Rout
3rd March 2023 – UBS has lost an appeal to the London Court of Appeal to dismiss a $500 million lawsuit by Chinese billionaire Guo Wengui & his firm Ace Decade, for UBS force-selling of a stock (Haitong Securities) for margin call during a market rout in 2015 which wiped out all his investment. In February 2022, UBS had earlier failed to dismiss the trial in the London court to hear UBS $500 million lawsuit by Chinese billionaire Guo Wengui, for UBS force-selling of a stock (Haitong Securities) for margin call during a market rout in 2015 which wiped out all his investment. The London High Court Justice Sara Cockerill said in 2022: “UBS was a critical part of the deal structure … The misstatements relied upon were made about UBS London’s policies. The claim resides in a disconnect between what he was told about the policies and intentions of the London branch were and what those policies actually were.” In January 2022, UBS had applied to the London court to dismiss a $500 million lawsuit filed by Chinese billionaire Guo Wengui, for UBS force-selling of a stock (Haitong Securities) for margin call during a market rout in 2015 which wiped out all his investment. In the filing, UBS asked the London court to dismiss the suit on the ground that the London court does not have the right to hear part of the case. Previously, UBS had officially made a statement that it “strongly disagrees with the claim and will vigorously defend itself.” In 2021, UBS, Credit Suisse, Nomura, MUFJ and Morgan Stanley incurred losses of $10 billion for $120 billion Archegos Family Office margin call.
London Court to Hear UBS $500 Million Lawsuit by Chinese Billionaire, Application to Dismiss Trial Fails
11th February 2022 – UBS has failed to dismiss the trial in the London court to hear UBS $500 million lawsuit by Chinese billionaire Guo Wengui, for UBS force-selling of a stock (Haitong Securities) for margin call during a market rout in 2015 which wiped out all his investment. The London High Court Justice Sara Cockerill said: “UBS was a critical part of the deal structure … The misstatements relied upon were made about UBS London’s policies. The claim resides in a disconnect between what he was told about the policies and intentions of the London branch were and what those policies actually were.” In January 2022, UBS had applied to the London court to dismiss a $500 million lawsuit filed by Chinese billionaire Guo Wengui, for UBS force-selling of a stock (Haitong Securities) for margin call during a market rout in 2015 which wiped out all his investment. In the filing, UBS asked the London court to dismiss the suit on the ground that the London court does not have the right to hear part of the case. Previously, UBS had officially made a statement that it “strongly disagrees with the claim and will vigorously defend itself.” In 2021, UBS, Credit Suisse, Nomura, MUFJ and Morgan Stanley incurred losses of $10 billion for $120 billion Archegos Family Office margin call.
Guo Wengui Exiled Chinese Billionaire
Guo Wengui is an exiled Chinese billionaire and known for his strong political opinions against Chinese leaders, fleeing to the United States in late 2014 on allegations of corruption, bribing, kidnapping, money laundering, fraud.
In 2021, UBS, Credit Suisse, Nomura, MUFJ and Morgan Stanley incurred losses of $10 billion for $120 billion Archegos Family Office margin call.
Chinese Exiled Billionaire Guo Wengui to Pay $134 Million for Moving Yacht to Avoid Creditor, Sues UBS $500 Million in Trading Loss
12th February 2022 – Chinese exiled billionaire Guo Wengui has been ordered to pay $134 million to creditor Pacific Alliance Asia Opportunity Fund within 5 days or to face arrest for moving a yacht out of United States water to avoid creditor. The yacht “Lady May” was moved to Bahamas despite a court order for it to remain in United States waters (New York). In 2008, Guo Wengui had received a $30 million loan from Pacific Alliance Asia Opportunity Fund, which has accrued to $116 million including interest. In 2020, the yacht was moved out of United States and a judge had imposed a fine of $500,000 a day. In the court filing, Guo Wengui stated he does not own the yacht “Lady May” and the yacht was reported to be transacted for GDP 28 million in 2015. Separately, Chinese exiled billionaire Guo Wengui had filed a lawsuit against UBS for $500 million, for UBS force-selling of a stock (Haitong Securities) for margin call during a market rout in 2015 which wiped out all his investment.
Guo Wengui Exiled Chinese Billionaire
Guo Wengui is an exiled Chinese billionaire and known for his strong political opinions against Chinese leaders, fleeing to the United States in late 2014 on allegations of corruption, bribing, kidnapping, money laundering, fraud.
In 2021, UBS, Credit Suisse, Nomura, MUFJ and Morgan Stanley incurred losses of $10 billion for $120 billion Archegos Family Office margin call. Read: Credit Suisse, UBS, Nomura, MUFJ and Morgan Stanley Losses for Archegos Family Office Nears $10 Billion
In February 2022, UBS had failed to dismiss the trial in the London court to hear UBS $500 million lawsuit by Chinese billionaire Guo Wengui, for UBS force-selling of a stock (Haitong Securities) for margin call during a market rout in 2015 which wiped out all his investment. The London High Court Justice Sara Cockerill said: “UBS was a critical part of the deal structure … The misstatements relied upon were made about UBS London’s policies. The claim resides in a disconnect between what he was told about the policies and intentions of the London branch were and what those policies actually were.” In January 2022, UBS has applied to the London court to dismiss a $500 million lawsuit filed by Chinese billionaire Guo Wengui, for UBS force-selling of a stock (Haitong Securities) for margin call during a market rout in 2015 which wiped out all his investment. In the filing, UBS asked the London court to dismiss the suit on the ground that the London court does not have the right to hear part of the case. Previously, UBS had officially made a statement that it “strongly disagrees with the claim and will vigorously defend itself.” In 2021, UBS, Credit Suisse, Nomura, MUFJ and Morgan Stanley incurred losses of $10 billion for $120 billion Archegos Family Office margin call. Read: Credit Suisse, UBS, Nomura, MUFJ and Morgan Stanley Losses for Archegos Family Office Nears $10 Billion
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