U.S. arrests Chinese tycoon for defrauding his followers of $1 billion online
The U.S. Department of Justice has confirmed the arrest of Chinese tycoon Ho Wan Kwokalso known as ‘Miles Guo’, for defrauding $1 billion (‘944 million) his followers on the Internet.
A statement from the U.S. agency also reports the. indictment of another individual, Kin Ming Je, a financial advisor to Kwok. and who has not been arrested because his whereabouts are unknown. Both Chinese nationals have been charged with wire fraud, security fraud, bank fraud, and money launderingas well as obstruction of justice in Je’s case.
According to the investigation, Kwok used his relevance as an opponent of Xi Jinping’s government. in China to create a community of followers on the Internet. Through the trust his supporters placed in him, Kwok urged them to invest in several of his companies.promising a return that would never come.
The money raised in this illicit way reached over $1 billion (over 944 million euros), and. was used for the purchase, among other things, of a mansion of more than 4,600 square meters, a Ferrari-brand car valued at $3.5 million (€3.31 million), two $36,000 (€34,000) mattresses and a luxury yacht worth $37 million (€35 million).
The Department of Justice has confirmed that these assets have been seized, as well as the balance of Kwok’s bank accounts, totaling $634 million (€598 million) from 21 different accounts.
FBI Assistant Director Michael J. Driscoll explained that this type of fraud. “turns innocent people into victimsand “damages the public’s confidence in the integrity of financial systems,” and he also assured that the FBI’s priority is to prosecute this type of crime.