Yesterday (July 10), the trial of Guo Wengui, accused of fraud, entered the closing argument stage. The prosecution told the jury that this exiled Chinese tycoon deceived followers to invest in his G Series, diverting the money to personal extravagant spending. On the other hand, the defense portrayed Guo as a misunderstood critic of the Chinese Communist Party.
Guo Wengui appeared in court wearing a light grey suit, nodding and smiling at the audience during the recess. The courtroom was packed, with extra rooms opened to accommodate spectators. Former Chinese famous footballer Hao Haidong and badminton player Ye Zhaoying rushed from Spain to attend as observers.
Prosecutor Ryan Finkel’s opening statement lasted four hours and outlined several key points: first, investment promises. Guo promised followers on social media that if they participated in the G Series investment and cryptocurrency plan, there would be no losses and he would take full responsibility.
Finkel played a clip repeatedly where Guo said, “If there is devaluation, you can come to me anytime, I can guarantee you will never lose. If you lose a penny, I will be responsible.” Finkel pointed out that Guo knew he was bankrupt at that time because the video was shot five months after Guo filed for bankruptcy.
Despite this, witness testimonies showed that followers believed these investment projects would be the foundation of the future New China, with great potential for substantial returns. As a result, large sums of money poured in, and Guo raised over $1 billion from 2018 to 2023.
Secondly, the prosecution pointed out that Guo concealed his control over GTV and other related companies in legal documents, describing the entire scheme as carefully designed. An example given was that Guo’s assistant, Wang Yanping, confirmed that the nominal directors of the G Series only executed orders without independent thinking.
Thirdly, Guo attacked those trying to reclaim fraudulent profits, inciting followers to confront critics, organize protests outside critics’ homes and children’s schools, causing psychological trauma and providing financial support to protesters.
Fourthly, Guo used investors’ money to buy luxury estates, Lamborghini cars, and yachts not for comrades but for himself and his family.
Finally, the prosecution believed Guo’s motive was personal bankruptcy and the need for funds, thus setting up multiple investment projects to deceive investors.
Specifically, Guo’s account funds were seized and frozen by a Hong Kong bank in October 2018. The U.S. Securities and Exchange Commission (SEC) contacted Guo’s companies in July 2020, and three media companies linked to Guo agreed to pay a settlement to the SEC in September 2021 to avoid prosecution.
At the same time, Guo established GTV in April 2020, Himalayan Loan Farm in July the same year, G Club in October, Himalayan Farm’s exchange platform in November 2021, and announced bankruptcy in February 2022.
“Is Guo Wengui pursued by the CCP? Yes. But that cannot be an excuse for his actions,” Finkel pointed out. Guo’s fraud targeted thousands of followers year after year, with ample and unquestionable evidence.
During the recess, supporters of Guo, including Hao Haidong, questioned the existence of the alleged numerous victims claimed by the prosecution. They found it incredulous that only three investors appeared as victims when there are supposedly thousands.
Guo’s defense attorney, Sidhardha Kamaraju, argued that first, the prosecution lacked evidence. Although the prosecution presented a lot of content to build a case around fraud and money laundering over four hours, there was insufficient evidence to establish guilt beyond a reasonable doubt.
“You need to see the complete story, not just the framework the prosecution is presenting,” Kamaraju emphasized, stating that under U.S. law, a crime must be incontrovertible without any doubts, and the prosecution’s evidence was lacking and unconvincing to prove Guo’s intent to deceive.
Furthermore, Kamaraju pointed out that Guo’s business activities were legal, and he acted as a whistleblower against the CCP, dedicating significant resources to anti-Communist movements, including the G Series. The defense claimed that the CCP attempted to tarnish his reputation and platform through various means, including sending officials to negotiate with him in the U.S. and even attempting to kidnap him to force him to return to China.
Moreover, the defense argued that Guo’s lavish lifestyle does not constitute a crime. He lived luxuriously before coming to the U.S., and he did not profit financially from the anti-Communist movement. They stated that displaying wealth is their client’s way of politically criticizing the CCP, and the jury should not rush to judgment as the prosecution did.
Kamaraju expressed that letting investors prosper is also a form of contempt towards the CCP. “He wanted to show people that without the CCP, they can still have a better life and possess material wealth.”
The defense emphasized that prosecutors failed to prove Guo’s actions beyond doubt, making it impossible to convict him. The closing arguments from both sides will continue on Thursday, with the jury to deliberate afterward to reach a final verdict. The trial of Guo Wengui began on May 24, lasting seven weeks. With the conclusion of the trial, all evidence and arguments have been presented, and the final judgment will now depend on the jury’s decision.