Media companies related to Guo Wengui paid US$59 million to settle the US Securities and Exchange Commission case


Financial fraud update

Three media companies related to Guo Wengui, a Chinese businessman in exile in the United States, will pay more than $59 million to U.S. securities regulators to resolve their allegations of issuing illegal securities to more than 5,000 investors.

The regulator said in a statement that the US Securities and Exchange Commission announced on Monday that it filed a civil lawsuit against GTV Media Group, Saraca Media Group and Guosheng Media for allegedly illegally issuing GTV stock. GTV and Saraca are also accused of illegally issuing digital asset securities called G-Coins or G-Dollars.

Richard Best, director of the SEC’s New York regional office, said in a statement: “Thousands of investors have purchased GTV stocks and G-Coins based on the limited information collected from the public by the interviewees. And G-Dollars.”

The US Securities and Exchange Commission stated that the two companies have been linked to Guo in numerous US media reports, but failed to register for two issuances. In total, they raised approximately US$487 million. They agreed to pay more than $539 million to settle the claim, neither acknowledging nor denying the regulatory agency’s findings.

Guo fled from China to the United States in 2014, where he formed alliances with demoralized overseas dissidents and China hawks, including Donald Trump’s former White House adviser Steve Bannon.

Steve Bannon helped launch GTV Media © AP

According to reports, Bannon is listed as a director of GTV Media, and together with Guo is the core figure behind the establishment of the company. Wall Street Journal.

Last year, it was reported that the former consultant Arrested The allegations of fraud on Guo’s yacht have nothing to do with the Chinese businessman. He was later pardoned by Trump.

Guo In 2017, when he publicly criticized the Chinese Communist Party through social media, he became the center of Chinese political drama and expressed doubts about the integrity of Beijing’s anti-corruption cleansing, which was initiated by Chinese Vice President Wang Qishan on behalf of Xi Jinping.

GTV could not be reached immediately for comment.


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