SEC Charges Chinese Businessman Miles Guo and Financial Advisor for Unregistered, Fraudulent Offerings

SEC Charges Chinese Businessman Miles Guo and Financial Advisor for Unregistered, Fraudulent Offerings

The Securities and Exchange Commission (SEC) has charged exiled Chinese businessman Miles Guo and his financial advisor William Je with unregistered and fraudulent offerings of securities that have raised over $850 million in investor funds. The SEC alleges that the majority of the funds were misappropriated by Guo and Je to purchase luxury goods such as a mansion in New Jersey and a Ferrari for his son, as well as to pay off family members. Additionally, the two are charged in connection with an offering of a crypto-asset security referred to as H-Coin or Himalaya Coin, in which investors were falsely promised that 20% of the value was backed by gold and that Guo himself would compensate them for any losses. In response to these charges, the SEC is seeking permanent injunctions, disgorgement of ill-gotten gains, civil penalties, officer and director bars, and a conduct-based injunction prohibiting Guo from participating in the issuance, purchase, offer, or sale of any securities, other than for his own personal accounts. Furthermore, the U.S. Attorney’s Office for the Southern District of New York today announced separate criminal charges against both Guo and Je. The SEC appreciates the assistance of the U.S. Attorney's Office for the Southern District of New York, the FBI, and various international regulators in this investigation.