Chinese Billionaire Guo Wengui Denied Bail in US Fraud Case

Chris Dolmetsch
·2 min read
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(Bloomberg) -- Chinese billionaire Guo Wengui, the exiled businessman and vocal critic of Beijing with ties to former Donald Trump adviser Steve Bannon, was denied bail after being charged by the US with fraud last month.

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US District Judge Analisa Torres on Thursday rejected Guo’s bid to remain free pending trial, saying that “no conditions or set of conditions” would ensure his return to court or the safety of the community.

Torres said Guo’s proposed bail package — which would have him released on a $25 million bond, $5 million of which would be secured by cash or real estate — is insufficient, noting he has filed for bankruptcy and claims to have only $10,000 in assets.

Read the judge’s order here

The judge said Guo “has the means and know-how to flee.” She noted that law enforcement recovered two passports during the raid of his home and said a “clever defendant with sufficient resources could figure out a way to leave the country without travel documents,” citing the escape of former Nissan Motor Co. Chairman Carlos Ghosn from custody in Japan.

The judge said the government would be “one in a long line of creditors” if he skipped out on bail. While he has proposed having the bond signed by two adults, including a family member, Torres said several relatives are accused of being recipients of fraud proceeds and Guo hasn’t identified anybody wealthy enough to pay the bond with sufficient ties to the US who would have “moral suasion” over him.

Guo and his financial adviser, Kin Ming Je, are accused of scheming to cheat thousands of victims out of more than $1 billion using what prosecutors called “a series of complex fraudulent and fictitious businesses and investment opportunities.” The two allegedly used more than $300 million of the proceeds to benefit themselves and their families, according to the indictment.

Guo has pleaded not guilty.

Read More: Chinese Tycoon Guo Is Arrested by US in Alleged $1 Billion Fraud

GPS monitoring is inadequate, the judge said, because “ankle monitors can be removed and ensure only a reduced head start should a defendant decide to flee,” and hiring private security to watch him “is not as reliable as a federal jail.”

“Further, defendant’s past obstructive conduct in civil litigation, in his bankruptcy proceeding, and in this case, as well as his actions following the SEC order and the seizure of funds, demonstrate that the court does not have reasonable assurance that defendant will abide by any conditions of pretrial release,” Torres wrote.

The case is US v. Ho Wan Kwok, 23-cr-00118, US District Court, Southern District of New York (Manhattan).

(Adds details and context starting in second paragraph.)

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