Judge denies bail for Guo Wengui
A New York federal judge on Thursday rejected a proposed $25 million bail package and ordered Chinese businessman Guo Wengui, one of China's most wanted fugitives, to remain in jail while he awaits trial on $1 billion of fraud and money-laundering charges, calling him a flight risk and saying the US Justice Department's evidence against him was strong.
Guo, 54, has been in a New York federal jail since his arrest last month. Federal prosecutors in the Manhattan US attorney's office alleged Guo took advantage of the hundreds of thousands of followers he amassed online by soliciting investments in a cryptocurrency he developed, a media company and other ventures but diverted much of their money to fund lavish lifestyles for himself and his family.
While in the US, Guo lived in a $67.5 million apartment in Manhattan. Authorities said his purchases included a $37 million yacht, a Ferrari, a 50,000 square-foot mansion in New Jersey and two $36,000 mattresses, and that they have seized $634 million of his alleged fraud proceeds from 21 bank accounts.
He has pleaded not guilty to 11 charges including securities fraud, wire fraud and concealing money laundering. He has been in a New York federal jail since his arrest last month. His lawyers had sought his release on the proposed $25 million bond, but U S District Judge Analisa Torres denied the request, saying the defendant has the means and the incentive to flee the country.
"He is facing a maximum sentence of more than 100 years' imprisonment, and the evidence against him is strong," Torres wrote in the ruling.
Guo left China in 2014 during an anti-corruption. The defendant's other names include Ho Wan Kwok and Miles Kwok. He was accused of crimes including bribery and money laundering in China.
Torres said prosecutors had shown it more likely than not that Guo was a serious flight risk and shown by clear and convincing evidence that he would pose a risk of economic harm to the community if released.
Torres also said Guo's "obstructive behavior" in the criminal case -- including a false claim he had just $10,000 of assets -- and in civil and bankruptcy proceedings left her with no "reasonable assurance" he would comply with any bail conditions.
Guo had also proposed 24-hour guard and being subjected to detention with GPS monitoring at his wife's Connecticut home. In seeking bail, Guo's lawyer Stephen Cook said Guo would remain in the United States if released on bond "because the risk to his life is simply too great for him to leave".
While in the US, he applied for asylum and started a media company with Steve Bannon, an adviser to former president Donald Trump. Bannon was arrested in a 2020 fraud case while aboard Guo's yacht. The former US president later pardoned Bannon.
In her decision, Torres said Guo also made false statements to court workers, telling them he had a total of $10,000 in assets, including two phones and his clothing. However, federal investigators who searched his penthouse on the date of his arrest found more than $500,000 in cash in various currencies in a safe in his dressing room, 30 custom-made suits, 17 computers, 43 external media-storage devices and 30 cellphones, she said. In a court filing, Guo said the $500,000 in cash didn't belong to him.
Torres called Guo's proposed bail package insufficient and said his suggestion of placing a location-monitoring device on him was inadequate.
"The Court finds that no condition or set of conditions would ensure Defendant's return to court or the safety of the community," Torres wrote.
The defendant has pleaded not guilty to 11 charges including securities fraud, wire fraud and concealing money laundering.
Agencies contributed to this story.
