Business tycoon Guo Wengui, accused of defrauding thousands of people, appears in Manhattan courtroom
NEW YORK -- A Chinese businessman stood in front of a judge on Wednesday evening charged with fraud and money laundering.
CBS2 learned more about the offenses and how the case is connected to a fire on the Upper East Side.
The suspect was all smiles in court, but the charges he's facing are very serious.
Business tycoon Guo Wengui, who also goes by a half dozen other aliases, is facing international money laundering, conspiracy, and fraud charges for allegedly soliciting more than $1 billion in investments from thousands of online victims.
"We're seeing these kinds of scams in the investment space growing as we're seeing the economy worsen," said Linda Miller of Audident Group, LLC.
Court documents say Guo lied to his victims, promising large returns on their investments into his two nonprofits. He's accused instead of using more than $300 million to purchase a New Jersey mansion, luxury vehicles, including a Ferrari, and a super yacht, among other things.
"It's really surprising to me, and it continues to surprise me how many people are willing to provide a lot of their money to people like this man," Miller said.
Guo left China in 2014 amid bribery and money laundering charges. He has close ties to former Donald Trump advisor Steve Bannon, announcing a joint initiative back in 2020 to overthrow the Chinese government.
"Mr. Guo had created these nonprofits and things that would allow people to align to his views, and then that gave them a sense of credibility that he was somebody that they could trust," Miller said.
Hours after Guo's arrest inside his 18th floor penthouse at the Sherry Netherland Hotel near Central Park, a fire broke out. Law enforcement officials said the FBI was on scene executing a search warrant when the blaze erupted.
Guo's financier, Kin Ming Je, who resides in the United Kingdom, is also facing charges. He is currently at large.
Guo remains in custody after pleading not guilty to his charges. He is due back in court on April 4.