On Wednesday, federal prosecutors announced the arrest of exiled Chinese businessman "Miles Guo" and his financial advisor "William Je" on charges related to over a billion dollars in fraud. Guo and Je were charged with wire fraud, securities fraud, bank fraud and money laundering. The charges stem from an alleged scheme in which the two men solicited investments from numerous programs and diverted those funds to bank accounts, hedge funds, and pricey purchases. Funds were allegedly misappropriated to purchase a $37 million yacht, a $3.5 million Ferrari, a $53,000 fireplace log cradle holder, and a $4.4 million Bugatti, as well as to cover maintenance on the yacht.
The U.S. Attorney for the Southern District of New York, along with Michael J. Driscoll of the FBI, stated that between 2018 and March 2023 Guo and Je conspired to defraud thousands of victims out of more than $1 billion, and Guo was the leader of the operation. Guo also started two nonprofit organizations called the Rule of Law Foundation and the Rule of Law Society to build a follower base that believed his statements on investing and making money.
The scheme operated by the two men included four parts: the GTV Media Group, Inc. Private Placement, the Farm Loan Program, G Club Operations, LLC, and the Himalaya Exchange. Through G|CLUBS and the Himalaya Farm Alliance, Guo and Je allegedly obtained a combined $400 million fraudulently.
The SEC also charged Guo and Je for their involvement in "unregistered and fraudulent offerings" that brought in over $850 million. The SEC is seeking permanent injunctions against Guo and Je, civil penalties, disgorgement of ill-gotten gains, and officer and director bars.
Ultimately, U.S. authorities seized more than $634 million from bank accounts associated with the Himalaya Exchange entities and other entities associated with Guo and Je.