📋 Tender Overview
The Securities and Exchange Commission charged exiled Chinese businessman Miles Guo and his financial advisor William Je for their involvement in unregistered and fraudulent offerings that raised more than 850 million.According to the SECs complaint since April 2020 Guo also known as Ho Wan Kwok Miles Kwok Wengui Guo and Brother Seven and his longtime financial advisor Je also known as Kin Ming Je misappropriated a large portion of the funds raised from investors to enrich themselves and their family members who are named as relief defendants. For example in connection with a private placement offering of common stock in GTV Media Group Inc. GTV Guo and Je allegedly diverted 100 million of investor funds to a hedge fund for the sole benefit of a company that is owned by Guos son. Additionally Guo allegedly misappropriated investor proceeds in two other offerings to fund his and his familys lifestyle including misappropriating approximately 40 million to purchase and renovate a mansion in New Jersey and 3.5 million to purchase a Ferrari for his son. The SEC also charged Guo and Puerto Rico and New York-based G Club Operations LLC and New York-based Mountains of Spices LLC with violations of the registration provisions of the securities laws in connection with these offerings. A fourth offering for which Guo alone is charged raised hundreds of millions of dollars from investors through a crypto asset security referred to as H-Coin Himalaya Coin or HCN and a related purported stablecoin. In addition since at least October 2021 Guo allegedly has made material misrepresentations to prospective investors in H-Coin falsely stating that 20 percent of H-Coins value was backed by gold and that he would personally compensate investors for any potential losses.We allege that Guo was a serial fraudster who raised more than 850 million by promising investors outsized returns on purported crypto technology and luxury good investment opportunities said Gurbir S. Grewal Director of the SECs Division of Enforcement. In reality Guo took advantage of the hype and allure surrounding crypto and other investments to victimize thousands and fund his and his familys lavish lifestyle.The SECs complaint seeks permanent injunctions against Guo and Je disgorgement of ill-gotten gains civil penalties and officer and director bars. The SECs complaint also seeks a conduct-based injunction that prohibits Guo from participating in the issuance purchase offer or sale of any securities including crypto asset securities other than for his own personal accounts.
