US judge denies bail to Guo Wengui

A New York federal judge has rejected proposed bail of $25 million and ordered Guo Wengui, one of China's most wanted fugitives, to remain in jail while he awaits trial on $1 billion fraud and money-laundering charges, calling him a flight risk and saying the US Justice Department's evidence against him was strong.

The 54-year-old was accused of multiple crimes before he fled China in 2014 and arrived in the United States the following year. He is also the subject of an Interpol Red Notice — an international arrest warrant.

He has been in a New York federal jail since his arrest last month. Federal prosecutors in the US attorney's office in Manhattan 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 a lavish lifestyle 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 4,645-square-meter 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.

His lawyers had sought his release on the proposed $25 million bond, but US 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.

The defendant's other names include Ho Wan Kwok and Miles Kwok. He was accused of crimes, including bribery and money laundering in China.

'Obstructive behavior'

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 and in civil and bankruptcy proceedings left her with no "reasonable assurance" he would comply with any bail conditions.

Guo had also proposed a 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 US 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. Trump 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 did not 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.

Agencies contributed to this story.