Sunday, September 26, 2021

Media companies linked to Chinese exiles to return millions to investors in SEC settlement

The Securities and Exchange Commission (SEC) on September 13 charged three US-based media companies with illegal unregistered offerings of stocks and digital assets.

The companies—New York-based GTV Media Group and Circa Media Group, and Phoenix-based Voice of Guo Media—are affiliated with Guo Wengui, a Chinese billionaire living in exile in the United States.

The three firms agreed to pay more than $539 million without accepting or denying the SEC’s findings, the US regulator said in a statement. The SEC did not mention Guo by name.

From April to June 2020, all three media urged individuals to invest in the GTV stock offering, while GTV and Sarka also marketed the sale of digital asset securities, which they termed “G-coin” or “G-dollar”. Gave. The firms promoted their two security offerings on the websites of GTV and Sarka, as well as on social media platforms including YouTube and Twitter.

All three media did not register with the SEC for their security offerings, the statement said.

According to the statement, Richard Best, director of the SEC’s New York regional office, said, “Thousands of investors purchased GTV stock, G-Coin and G-Dollar based on solicitation from the general public with limited disclosures from respondents.”

The SEC found that all three firms raised approximately $487 million through two offerings from more than 5,000 investors.

“GTV and Sarka are also liable to pay a deviance of more than $434 million on a combined and multiple grounds, as well as to pay prejudice interest of approximately $16 million, and a civil penalty of $15 million each. agreed to ceasefire order,” according to an SEC statement.

Meanwhile, according to the SEC, Voice of Guo agreed to pay a civil penalty of $5 million, on top of $52 million, plus a predetermination interest of close to $2 million.

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Also on Monday, New York Attorney General Letitia James announced that it had secured $479.9 million in recovery from GTV and Saraca for failing to comply with state laws when selling stocks and digital currencies to dozens of New York investors. , according to a statement from his office.

The monetary relief was part of the $539 million announced by the SEC.

According to the attorney general, Steve Bannon, the former White House chief strategist during the Trump administration, briefly served as non-executive director at GTV. The Attorney General’s office did not accuse Bannon or Guo of any wrongdoing.

Bannon was arrested last year on charges that he defrauded donors in a campaign for a private wall on the US-Mexico border. He pleaded not guilty and called the charges a “political hit job”. He was later pardoned by former President Donald Trump.

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Guo, also known as Miles Guo, fled China in 2014 and is known for his links with retired Chinese regime officials, especially those linked to former Chinese leader Jiang Zemin. He has since accused the Jiang family of embezzling Chinese money and collecting money.

Yug Times Photos
Chinese billionaire Guo Wengui dishes on the wrongdoings of top Chinese officials during one of his YouTube livestream sessions. (screenshot via youtube/guo wengui)

A lawyer for GTV and Saraka said in a statement to the Financial Times that both media companies are “delighted to have reached this resolution, which achieves our goal of returning funds to our supporters—an objective that follows these regulatory matters.” From now on we have. Started.”

Guo said in a post published on his Getr account that he has “accepted the SEC penalty” and added that working with the SEC has been a “success.”

frank fango

Frank Fang is a Taiwanese journalist. He covers news in China and Taiwan. He holds a master’s degree in materials science from Tsinghua University in Taiwan.

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This News Originally From – The Epoch Times

Media companies linked to Chinese exiles to return millions to investors in SEC settlement
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