Sunday, September 19, 2021
HomeTrending NewsIn A US Securities Case, Chinese Tycoon Companies Agree To Pay $...

In A US Securities Case, Chinese Tycoon Companies Agree To Pay $ 539 million

According to regulators, a Chinese businessman, recognized as a critic of the reigning communist party in his country, is linked to three American companies. They agreed to pay around 539 million dollars to settle charges obtained for making illegal offers of securities.

The Securities and Exchange Commission reported Monday that these companies are based in Arizona and New York and are linked to tycoon Guo Wengui. Together, they have raised around $ 487 million from 5,000 investors who bought GTV Media Group Inc. shares and invested in a cryptocurrency known as G-Coins or G-Dollars.

Guo had lived in New York since 2014, when he decided to migrate from China due to an anti-corruption movement led by President Xi Jinping, with which they managed to capture people close to the tycoon, including an intelligence official. Additionally, the Chinese authorities charged Guo, Miles Kwok, with rape, kidnapping, and bribery.

According to the SEC, US companies linked to the mogul were accused of failing to register the securities with stock market regulators. In addition, it was reported that they sold shares and digital assets using videos from GTV, Sacara, on YouTube, Twitter, and other Social Networks, which is completely illegal.

Read More: Installment of the Child Tax Credit Payment of $300 or $250 Will Arrive This WeekIn a US securities case, Chinese tycoon companies agree to pay $ 539 million

According to the SEC, GTV and Saraca Media Group Inc. agreed to return $ 434 million-plus $ 16 million in interest and pay a civil penalty of $ 15 million each. Additionally, it reported that Voice of Guo Media Inc. agreed to return $ 52 million-plus $ 2 million in interest and pay a civil penalty of $ 5 million. Also, the SEC said that the companies agreed not to participate in any digital asset security offerings.

Richard R. Best, the director of the SEC’s New York office, said in a statement: “The remedies ordered by the Commission today, which include a fair distribution of funds, will provide significant relief to investors in these illegal offerings. . “

Guo has irritated China’s ruling party because he began to launch accusations about corruption on social media, mostly because he was previously a public official with influence in the Chinese government. In 2017, his attorney said that he had applied for political asylum in the United States.

Steve Bannon, President Donald Trump’s former political strategist, and Guo announced last year that the founding of the “Federal State of New China” was an initiative to “overthrow the Chinese government.”

Final words

Guo was recognized as one of the richest businessmen in China, managing to accumulate a fortune of 1.1 billion dollars in 2015, an estimate made by Forbes magazine. His current net worth is unclear.

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