Fundraising at Company Tied to Steve Bannon and Guo Wengui Faces Probe

 

Former Trump political adviser and exiled Chinese businessman raised more than $300 million in private offering, Guo says

By  Brian Spegele ,  Sha Hua  and  Aruna Viswanatha

Aug. 19, 2020 1:17 pm ET

A media company linked to former Trump political adviser Steve Bannon and exiled Chinese businessman Guo Wengui raised more than $300 million in a private offering this spring that is now being investigated by federal and state authorities, say people familiar with the matter.

Exiled Chinese businessman Guo Wengui built a large following online, particularly among the Chinese diaspora in the U.S. and elsewhere. NATALIE KEYSSAR FOR THE WALL STREET JOURNAL

 WSJ NEWS EXCLUSIVE  U.S.

Fundraising at Company Tied to Steve Bannon and Guo Wengui Faces Probe

Former Trump political adviser and exiled Chinese businessman raised more than $300 million in private offering, Guo says

By  Brian Spegele,  Sha Hua and Aruna Viswanatha

Aug. 19, 2020 1:17 pm ET

A media company linked to former Trump political adviser Steve Bannon and exiled Chinese businessman Guo Wengui raised more than $300 million in a private offering this spring that is now being investigated by federal and state authorities, say people familiar with the matter.

JPMorgan Chase & Co. and Wells Fargo & Co. have frozen accounts tied to fundraising for the company, GTV Media Group, some of these people said. Bank of America Corp. also closed an account for GTV Media’s parent company shortly after it was opened in recent months, another person with knowledge of the situation said.

The federal probe is being conducted by the Federal Bureau of Investigation and the Securities and Exchange Commission, people familiar with the investigation said. The investigators have been examining whether GTV Media or associates of Mr. Guo violated securities laws through the private share placement. The New York state attorney general’s office has also been examining the matter, these people said.

Soon after the fundraising, some investors began pushing for refunds after they said they never received official documentation verifying their investments in GTV Media, among other issues that led them to distrust Mr. Guo.

Mr. Guo, a former property tycoon who is now one of China’s most-wanted fugitives, and Mr. Bannon were two of the key people behind GTV Media’s launch this spring, according to a company fundraising document and interviews. The document identifies Mr. Bannon as a company director, while Mr. Guo served as the public face for its fundraising. Associates of Mr. Guo are listed as GTV Media executives, while Mr. Guo is described as a company adviser.

Messrs. Guo and Bannon joined forces in the last few years as tough critics of China’s Communist Party, and recently have been spending significant time together on Mr. Guo’s yacht, according to videos posted on a website affiliated with Mr. Guo. Mr. Guo faces accusations of wrongdoing in China including bribery, fraud and money laundering—allegations he has denied.

GTV Media said in a statement that it had carried out the private placement under the guidance of its lawyers and that “all of the raised funds are intact.”

The company added that it is fully prepared to cooperate with any U.S. agency that has questions about the private placement or its business.

A representative for Mr. Guo didn’t provide comment, and Mr. Bannon declined to comment.

Former Trump political adviser Steve Bannon and Guo Wengui joined forces in the last few years as tough critics of China’s Communist Party.

PHOTO: DON EMMERT/AGENCE FRANCE-PRESSE/GETTY IMAGES

The FBI had been examining Mr. Guo’s work with Mr. Bannon even before the private placement this spring. The Wall Street Journal, citing people familiar with the matter, reported last month that FBI agents had been investigating Mr. Guo and the money he used to fund his media efforts in the U.S. for more than six months and that prosecutors from the U.S. attorney’s offices in Manhattan and Brooklyn had been involved in the probe.

At that time, representatives for Messrs. Guo and Bannon said neither man had been contacted by the FBI as part of the probe.

Earlier this month, Mr. Guo said in an online video that he had been subpoen