NEW YORK (AP) – Three companies affiliated with a Chinese businessman who strongly oppose the ruling Communist Party in his country have agreed to pay $ 539 million to settle charges against illegal security, according to regulators.
Guan Wengui-based companies in New York- and Arizona acquired $ 487 million from 5,000 women who bought shares in GTV Media Group Inc. and digital assets called G-Coins or G-Dollars, the Securities and Exchange Commission said Monday.
Guo, who lives in New York City, left China in 2014 during a corruption scandal led by President Xi Jinping that drew people close to the businessman, including the chief of staff. Chinese authorities have accused Guo, also known as Miles Kwok, of raping, arresting and bribing him.
The companies were charged with refusing to register security with the authorities, according to the SEC. He also said that he has sold stocks and digital goods through videos on GTV’s and Saraca’s website as well as on YouTube, Twitter and other media outlets.
GTV and Saraca Media Group Inc. agreed to lose $ 434 million plus interest of $ 16 million and pay interest on $ 15 million each, according to the SEC. Inatinso Voice of Guo Media Inc. agrees to repay $ 52 million plus $ 2 million interest and pay interest of $ 5 million. The SEC said the companies also agreed not to participate in providing digital security protection.
“The Commission’s mandate today, which includes fair distribution of funds, will provide a safe haven for investors in these areas,” said Richard R. Best, SEC head of New York’s SEC office.
A former civil servant who turned houses into real estate, Guo sued the Chinese ruling party, accusing him of fraud on television. His lawyer said in 2017 he had applied for asylum in the United States.
Last year, Guo and Steve Bannon, former politicians of then-President Donald Trump, announced the establishment of the “Federal State of New China,” a “way to overthrow the Chinese government.”
Guo was one of China’s richest businessmen, with a fortune that Forbes magazine reported $ 1.1 billion in 2015. Its value is currently unknown.
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US Securities and Exchange Commission: www.sec.gov