Chinese Businessman Buys Mahwah Mansion With Fraud Proceeds: Officials

MAHWAH, NJ — A Chinese businessman stands accused of leading a conspiracy to defraud thousands of online followers and misappropriate the fraudulently obtained funds to buy himself, and his close relatives, a 50,000-square-foot Mahwah mansion, among other things, federal authorities said.

Ho Wan Kwok, aka "Miles Guo," was indicted on 12 charges that arise from an alleged scheme to defraud his online followers of more than $1 billion from at least in or about 2018 to in or about March 2023, the U.S. Attorney's Office for the Southern District of New York said.

Kwok, who has lived in the U.S. since in or about 2015, founded two purported nonprofits to amass followers who were aligned with a professed campaign against the Chinese Communist Party and who were "inclined to believe his statements regarding investment and money-making opportunities," the attorney's office said.

As alleged, Kwok lied to his followers and promised them outsized returns if they invested in, or provided money to, various entities and programs, and then "lined his pockets" with the money he stole, including funding the $26.5 million mansion, a $3.5 million Ferrari and a $37 million yacht, the attorney's office said.

Known as the Crocker Mansion, the historic house — built for businessman George Crocker — is a 21-bedroom, 26-bathroom property on 12 acres of grounds overlooking the Ramapo Mountains, realtors said.

On Wednesday, federal authorities seized assets, including the home, purchased with proceeds of Kwok's alleged fraud, and, between September 2022 and March 2023, seized about $634 million from 21 bank accounts that also constitutes proceeds from the fraud, the attorney's office said.

Kwok and his financial advisor Kin Ming Je (aka "William Je") were charged with various fraud offenses and money laundering, for they, as part of the scheme, transferred hundreds of millions in stolen funds to conceal activities, the indictment said.

Kwok was arrested at his Central Park penthouse, about six hours before a "mysterious fire" broke out, sending the 15-room apartment up in flames, Patch and Independent reported. Je, who was also charged with obstruction of justice, is still at large, the attorney said.

It was also alleged on Wednesday, in parallel legal action by the Securities and Exchange Commission, that Kwok raised hundreds of millions in "ill-gotten gains" from investors to fund his and his family's lifestyle, the SEC said in a complaint filed in U.S. District Court.

Kwok had raised more than $850 million by promising investors outsized returns on purported crypto, technology and luxury good investment opportunities, SEC Division of Enforcement Director Gurbir Grewal said. Kwok then, the SEC said, misappropriated a large portion of the funds to enrich himself and his family.

In the lawsuit, the SEC (whose mission is to protect investors) seeks permanent injunctions against Kwok and Je, and an injunction that prohibits him from participating in issuance, purchase, offer or sale of securities, other than for personal accounts.