The Federal Bureau of Investigation (FBI) arrested Chinese billionaire Guo Wengui, an associate of right-wing media personality Steve Bannon, over a $1 billion fraud conspiracy.

The suspect was arrested on Wednesday morning in New York for allegedly orchestrating a complex conspiracy to defraud thousands of online followers. In a federal indictment unsealed in Manhattan, Guo and a co-defendant are facing charges that they took advantage of the Chinese billionaire's "prolific online presence" to solicit investments from their followers.

Chinese Billionaire Charged in $1 Billion Fraud Conspiracy

These were solicited in various entities and programs with the promise of "outsized financial returns and other benefits." The US attorney for the Southern District of New York, Damian Williams, said that Guo was being charged with taking advantage of the money he stole by purchasing various products for himself and his close relative.

These include a 50,000-square-foot mansion, a $3.5 million Ferrari, and two $36,000 mattresses. Guo also allegedly used the funds that he received to finance a $37 million luxury yacht, as per the New York Times.

The suspect, also known as Miles Kwok, was once a one-time top adviser to former United States President Donald Trump. Bannon was on a yacht owned by Guo when he was arrested in a fraud case in August 2020 before the Republican businessman pardoned him following his not-guilty plea to the charges.

The FBI took Guo into custody on Wednesday while he was at his apartment in the Sherry-Netherland Hotel. The Chinese billionaire's lawyer had no immediate comment regarding his client's arrest.

The suspect was also taken to a brief court appearance on Wednesday, where he was seen wearing a pullover, black cargo pants, and black sneakers. Guo smiled, waved to several spectators at the scene, and entered a not-guilty plea through his attorney.

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Lying to His Victims

Prosecutors also said they seized more than $650 million in alleged fraud proceeds from 21 different bank accounts and assets. These included a Lamborghini Aventador SVJ Roadster, part of the case against the defendant, and William Je, his financial advisor, in Manhattan federal court, according to CNBC.

The 52-year-old fugitive Chinese postponed a bail application until his lawyers could return from being out of town. A fire broke out as FBI agents searched a Manhattan penthouse apartment that Guo owns. Officials noted that they observed smoke coming from a light fixture and immediately called 911 around noon.

The New York Fire Department was able to control the blaze and put it out, and a bomb squad has started investigations to determine the fire's origin. Before that particular incident, Guo was already in official custody.

In the 12-count indictment against Guo, officials argued that he lied to his victims and told them they would get outsized returns if they invested or gave money to GTV, his so-called Himalaya Farm Alliance, G|Clubs, and the Himalaya Exchange. It added that he laundered hundreds of millions of stolen funds to mask the conspiracy's illegal activities, said Fox Business.

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