Wanted tycoon faces lawsuit in New York

China | Jun 14, 2017
A Chinese billionaire who made allegations of high-level corruption against Communist Party officials in his homeland and is wanted by authorities in Beijing is facing a lawsuit in New York where he now lives.

Guo Wengui, a real-estate tycoon who lives in a luxury Fifth Avenue apartment overlooking Manhattan's Central Park, is being sued by nine creditors for US$50 million (HK$390 million) over outstanding debts, their attorney Kevin Tung said.

They accuse Guo of using complex financial mechanisms to siphon capital from two investment funds, Zenith and Pangu - in which he held a majority stake - outside of China.

"Having tried unsuccessfully to seek redress in China, the plaintiffs have turned to New York, where Mr Guo is the owner, either directly or indirectly, of sizeable assets, in order to demand reparations for losses incurred in China," said Tung.

Guo's accusations have been a thorn in the side of the Communist Party as it prepares for its 19th Congress this fall. The fugitive has threatened to release incriminating information about top Chinese officials coinciding with the leadership gathering.

In particular, Guo said he has details of alleged overseas transactions by the family of Wang Qishan, Beijing's anti- corruption czar.

On Friday, three executives of the Beijing Pangu Investment fund, which is linked to Guo, confessed to fraud involving 3.2 billion yuan in bank loans at a trial in Dalian.


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June 2017