Miles Guo Sentenced To 30 Years In Prison For Leading Billion-Dollar Fraud

Attorney for the United States, Sean S. Buckley, Acting under Authority Conferred by 28 U.S.C. § 515, announced that MILES GUO, a/k/a "Ho Wan Kwok," a/k/a "Guo Wengui," a/k/a "Brother Seven," a/k/a "The Principal," a/k/a "Boss," was sentenced yesterday by U.S. District Judge Analisa Torres to 30 years in prison for racketeering conspiracy, conspiracy to commit wire fraud, securities fraud, and money laundering, among other charges, for leading an expansive and complex scheme to solicit more than $1 billion of investments in various entities and programs through false statements and misrepresentations to thousands of GUO's online followers. On July 16, 2024, GUO was convicted following a seven-week jury trial.

"Miles Guo led a massive scheme to steal more than $1 billion through lies and deception from thousands of Americans and victims around the world," said Attorney for the United States Sean S. Buckley. "After immigrating to this country, rather than being satisfied with the many legitimate opportunities afforded to him, Guo exploited the trust that thousands had placed in him for his own greed. This sentence shows that fame and wealth do not place you above the law, and that fraudsters who victimize families to enrich themselves will be met with significant consequences."

According to the charging documents, public court filings, statements made in court, and evidence admitted at GUO's trial:

GUO's schemes began when he announced the founding in 2018 of purported charitable organizations-the Rule of Law Foundation and Rule of Law Society-by falsely promising potential donors that he was contributing the first $100 million to their cause. Trading on the Rule of Law groups' purported charitable works, GUO launched an unregistered offering of stock in his media venture, GTV.

When the GTV stock offering came under scrutiny by the U.S. Securities and Exchange Commission, GUO and his co-conspirators turned to other schemes. GUO obtained another $100 million through a program in which victims were told they could lend money to networks of GUO's supporters and receive GTV stock in addition to interest payments. At around the same time, GUO raised at least approximately $240 million by selling memberships in G|CLUBS, a purported membership club that promised GTV stock in exchange for members' dues and offered little to no other material benefits. In a 2021 broadcast on GTV, GUO launched the Himalaya Exchange, a purported cryptocurrency ecosystem where people could trade "H Coin" and "H Dollar," which were phony digital assets that were fraudulently described as blockchain-native cryptocurrencies but were in fact little more than made-up figures on an internal company spreadsheet.

GUO perpetuated these interrelated fraud schemes over approximately five years by installing figurehead executives at companies that GUO actually controlled, promising investors that he would personally guarantee their funds against loss, and broadcasting serial lies about everything from the benefits available to G|CLUBS members to the made-up gold reserve that he claimed stood behind the value of his phony digital assets. Along the way, GUO and his family spent victims' stolen funds on a $26.5 million mansion in New Jersey, an $832,000 Lamborghini, two multimillion-dollar sports cars for GUO's son, and a $2 million yacht, among many other extravagant purchases. Between 2022 and 2023, the United States seized more than $630 million of GUO's criminal proceeds in addition to luxurious items such as sports cars, a mansion, and expensive furniture, some of which are pictured below:

If you believe you are a victim of GUO's fraud, please find more information here: https://www.justice.gov/usao-sdny/united-states-v-ho-wan-kwok-aka-miles-guo-and-kin-ming-je-aka-william-je.

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In addition to the prison term, GUO, 55, originally from the People's Republic of China, was ordered to pay a $900 special assessment. GUO was ordered to forfeit $889 million in proceeds from his illegal schemes, as well as his interest in specific property including a $26.5 million mansion in New Jersey, a Lamborghini, a Rolls Royce Phantom, and a Bugatti sports car.

Mr. Buckley praised the investigative work of the Federal Bureau of Investigation. Mr. Buckley further thanked the U.S. Securities and Exchange Commission, which has filed a parallel civil action against GUO.

The case is being handled by the Complex Frauds and Cybercrime Unit of the Office's Criminal Division. Assistant U.S. Attorneys Micah F. Fergenson, Ryan B. Finkel, Justin Horton, and Juliana N. Murray are in charge of the prosecution.