Lawyers for Guo Wengui, a wealthy Chinese billionaire charged with defrauding investors of over $1 billion, argued during his trial that he was actually the leader of an anti-Communist movement and did not need the money he was accused of stealing. Sabrina Shroff, a lawyer for Guo, claimed that he would not defraud his supporters as doing so would undermine his efforts to oppose the Chinese Communist Party. Guo, also known as Miles Kwok, has been in federal detention in Brooklyn since his arrest in 2023 on charges of fraud and money laundering. Prosecutors allege that Guo used investor funds to finance his lavish lifestyle, including purchases such as a yacht, luxury cars, and a mansion.
Guo, who fled to the United States nine years ago after a powerful Chinese intelligence official he was aligned with was detained by authorities, began speaking out against senior Chinese officials in 2017. His anti-Communist stance gained support from thousands around the world, leading him to declare the formation of the “New Federal State of China” with the help of allies such as Steve Bannon. Despite accusations from the Chinese government and an Interpol red notice arrest warrant, Guo continued his crusade against the ruling party, attracting loyal followers who invested in his endeavors.
The government alleges that Guo defrauded his supporters by convincing them to invest their money with him, using accounts from former employees, bank records, and videos as evidence. Some of those who lost money will testify against him during the trial. Prosecutors may have difficulty persuading jurors that Guo can be both a criminal and an anti-Communist figure simultaneously. In response to the defense strategy of linking Guo’s treatment by the Chinese government to the fraud charges, prosecutors asked the judge to bar such arguments, stating that it would be improper and impermissible.
During opening statements, Guo’s lawyer portrayed him as a victim of the Chinese Communist Party due to his opposition to the regime, claiming that he had endured hardships to build a political movement and would not risk it for money he did not truly need. Judge Analisa Torres reminded the jury that opening statements are arguments and not evidence, instructing them to consider the information presented. Guo had a close relationship with a senior Chinese official before leaving the country, only doing so after the official was detained on corruption charges. It was not until he had been in the United States for two years that Guo began speaking out against senior Chinese officials.
Despite the allegations of fraud and money laundering, Guo’s supporters view him as a celebrated anti-Communist crusader who has taken aim at China’s ruling party. His efforts to establish the “New Federal State of China” with the support of American right-wing figures like Steve Bannon have gained him a following of thousands worldwide. As the trial unfolds, prosecutors will seek to prove that Guo’s actions were criminal and that he knowingly defrauded his supporters. The defense will likely continue to argue that Guo’s anti-Communist activities and opposition to the Chinese government are evidence of his innocence.
