Fugitive Chinese billionaire Guo Wengui holds a press conference on November 20, 2018 in New York on the death of tycoon Wang Jian in France on July 3, 2018. – Guo was introduced by Steve Bannon, former strategist of the White House.
Don Emmert | AFP | Getty Images
The Securities and Exchange Commission on Monday accused three media companies linked to wealthy Chinese exile Guo Wengui of making offers of illegal securities.
The companies, New York City-based GTV Media Group and Saraca Media Group, as well as Phoenix-Arizona-based Voice of Guo Media, agreed to settle for more than $ 539 million, according to the SEC.
The SEC accused GTV, Saraca and Voice of Guo of making an unregistered illegal offer of GTV common shares. GTV and Saraca were also charged with an unregistered illegal offer of a digital asset security called G-Coins or G-Dollars.
The companies obtained $ 487 million from more than 5,000 investors from the two securities offerings, according to the SEC.
According to reports, GTV Media, one of the media companies linked to Guo, also has ties to former White House strategist Steve Bannon. The Wall Street Journal reported last year that the SEC was studying the company’s fundraising tactics and noted at the time that Bannon was the company’s director.
Bannon and Guo have been close for years. Former President Donald Trump’s adviser was arrested on Guo’s yacht and accused of defrauding hundreds of thousands of donors through his “Let’s Build the Wall” fundraising campaign. Bannon pleaded not guilty and was later pardoned by Trump.
The press release does not mention Guo or Bannon by name.
Guo, his associates and some of the same companies were sued by investors in a class action lawsuit earlier this year for alleged breach of securities laws. Bannon is not mentioned in the lawsuit.
As for the agreement with the SEC, the companies linked to Guo did not admit or deny any of the commission’s findings. Instead, the SEC says the companies agreed on a detailed deal.
“GTV and Saraca agreed to a cessation and abandonment order, to pay the disbursement of more than $ 434 million plus prejudicial interest of approximately $ 16 million jointly and each to pay a civil penalty of $ 15 million.” , according to the SEC Press Release.
“Voice of Guo agreed to a cessation and abandonment order, to pay the disbursement of more than $ 52 million plus damages of nearly $ 2 million and pay a civil penalty of $ 5 million. The order establishes a Fair Fund to Return Money to Injured Investors “.