Wed. Oct 27th, 2021

Financial Fraud Updates

Three media companies affiliated with Guo Wengui, a Chinese businessman and prominent critic of the Chinese Communist Party living in exile in the US, will pay more than $ 539 million to US security regulators for allegations that they have issued illegal effects to more than 5,000 investors , to solve.

The U.S. Securities and Exchange Commission on Monday announced civil action against GTV Media Group, Saraca Media Group and Voice of Guo Media for an alleged illegal offering of GTV shares, the regulator said in a statement. GTV and Saraca have also been accused of illegally issuing a digital asset security called G-Coins or G-Dollars.

“Thousands of investors bought GTV shares, G-Coins and G-Dollars based on respondents’ request to the general public with limited disclosure,” Richard Best, director of the SEC’s regional office in New York, said in a statement. said.

The companies, linked to Guo in numerous U.S. media reports, were unable to register both offers, raising a total of about $ 487 million, the SEC said. They agreed to pay more than $ 539 million to settle the claims without acknowledging or denying the regulator’s findings.

Guo fled China to the United States in 2014, where he had an alliance with demoralized foreign dissidents and Chinese hawks, including Steve Bannon, Donald Trump’s former White House adviser.

Steve Bannon helped launch GTV Media © AP

According to the Wall Street Journal.

Last year, the former adviser was apparently arrested on Guo’s yacht on charges of fraud unrelated to the Chinese businessman. He was later pardoned by Trump.

Guo was at the center of Chinese political drama in 2017 when he publicly criticized the Chinese Communist Party via social media, and questioned the integrity of Beijing’s anti-corruption eradication, led by the vice-president Xi Jinping. President of China, Wang Qishan.

GTV could not be immediately reached for comment.

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