Source: Federal Bureau of Investigation (FBI) State Crime Alerts (c)
Daniel M. Gitner, Attorney for the United States, Acting under Authority Conferred by 28 U.S.C. § 515, announced today that YVETTE WANG, a/k/a “Yanping,” was sentenced by U.S. District Judge Analisa Torres to 10 years in prison for conspiracy to commit wire fraud and conspiracy to commit money laundering in connection with her managerial role in a sprawling and complex scheme WANG and her co-conspirator, Miles Guo, orchestrated in order to fraudulently solicit investments from thousands of Miles Guo’s online followers in various entities and programs. As part of that scheme, WANG and Guo made false representations to induce victims to invest money in various entities WANG and/or her co-conspirators controlled, including GTV Media Group, Inc. (“GTV”), the Himalaya Farm Alliance, G Club Operations, LLC (“G|CLUBS”), and the Himalaya Exchange. And then WANG and her co-conspirators spent their victims’ money on themselves, purchasing luxurious items such as million-dollar sports cars and a New Jersey mansion.
Attorney for the United States Daniel M. Gitner said: “Yvette Wang worked with Miles Guo to defraud thousands of victims out of more than $1 billion. Today’s sentence is a reminder that there will be serious consequences for this conduct, and that this Office will tirelessly in its work to detect, prosecute, and punish fraud.”
According to the charging documents, public court filings, statements made in court, and evidence admitted at Miles Guo’s trial:
From at least in or about 2018 through at least in or about March 2023, WANG and others conspired to defraud thousands of victims of more than approximately $1.4 billion. Miles Guo was the leader of this complex conspiracy. WANG was Guo’s “Chief of Staff.” In that capacity, WANG played a managerial role in a variety of entities that the Government has alleged were part of the “G Enterprise” – a series of interrelated entities and companies that were used by WANG and her co-conspirators to carry out this billion-dollar fraud scheme. Through her work in the G Enterprise, and as WANG well knew, WANG directed the expenditure of fraud proceeds on luxury items for herself, Miles Guo’s family, and others.
WANG and her co-conspirators’ fraud relied on several interrelated operations: the Rule of Law Charities, GTV Private Placement, the Farm Loan Program, G|CLUBS, the Himalaya Exchange, and A10.
Between on or about April 20, 2020, and on or about June 2, 2020, approximately $452 million worth of purported GTV common stock was sold to more than 5,500 investors. Investors participated in the GTV Private Placement based, in part, on the belief that their money would be invested into GTV to develop and grow that business. In early June 2020, as WANG and her co-conspirators agreed, WANG transferred $100 million of funds raised from the GTV Private Placement into a high-risk hedge fund for the benefit of GTV’s parent company and its ultimate beneficial owner, Guo’s son.
On or about July 22, 2020, in a video distributed via social media, WANG’s co-conspirator promoted the Farm Loan Program, which was a purported opportunity to obtain stock in GTV in exchange for a loan. However, no stock was ever provided, and WANG and her co-conspirators misappropriated funds that were raised through the Farm Loan Program. For example, approximately $2.3 million was used to cover maintenance expenses associated with an approximately 145-foot luxury yacht worth approximately $37 million.
From at least in or about October 2020 through at least in or about March 2023, WANG and her co-conspirators fraudulently obtained more than approximately $250 million in victim funds through G|CLUBS. G|CLUBS claimed on its website to be “an exclusive, high-end membership program offering a full spectrum of services” and “a gateway to carefully curated world-class products, services and experiences.” WANG was the de facto CEO of G|CLUBS, and as she well knew, G|CLUBS did not provide anything other than superficial services to its members. Moreover, on the basis of Guo’s statements in online videos, victims sent money to G|CLUBS expecting to receive stock in GTV, G|Fashion, or other entities. But, as WANG well knew, victims never received stock and instead G|CLUBS funds were used—often at WANG’s direction—to purchase, among other things, a 50,000 square foot New Jersey mansion; various furniture and decorative items including, among other items, Chinese and Persian rugs worth approximately $978,000, a $62,000 television, and a $53,000 fireplace log cradle holder; a $900,000 Lamborghini, and a custom-built Bugatti sports car for approximately $4.4 million.
On or about November 1, 2021, WANG’s co-conspirators introduced purported cryptocurrencies called the Himalaya coin and the Himalaya dollar through a fraudulent cryptocurrency exchange called the Himalaya Exchange. These purported cryptocurrencies were fraudulent and designed so that the conspiracy could collect additional money from victims. On or about September 20, 2022, and September 21, 2022, U.S. authorities served judicially-authorized seizure warrants on several domestic banks and subsequently seized approximately $335 million of proceeds from bank accounts held in the names of Himalaya Exchange entities and other entities associated with WANG and her co-conspirators.
Wang was arrested on March 15, 2023, at which time FBI agents located $130,000 of cash in a safe in her apartment.
In connection with the sentencing, Judge Torres said that Wang was an “integral part of the conspiracy and knew what she was doing was illegal.”
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In addition to the prison term, WANG, 45, of New York, New York, was sentenced to three years of supervised release concurrently on each count. WANG also agreed to pay forfeiture in the amount of $1.4 billion.
Guo was convicted at trial on July 16, 2024. Guo’s sentencing date is pending.
Mr. Gitner praised the outstanding investigative work of the Federal Bureau of Investigation.
The case is being handled by the Complex Frauds and Cybercrime Unit of the Office’s Criminal Division. Assistant U.S. Attorneys Micah F. Fergenson, Ryan B. Finkel, Justin Horton, and Juliana N. Murray are in charge of the prosecution.
