The arrest Thursday of Steve Bannon, the former chief strategist of president Donald Trump, on fraud charges again shines a harsh light on Bannon's close business and political relationship with exiled Chinese billionaire and "anti-communist" dissident Guo Wengui.
On June 3, both Bannon and Guo led ceremonies in New York that facetiously declared the establishment of the "Federal State of New China" to replace the communist People's Republic of China. Both men have known each other since 2017.
Bannon was arrested this week by local police aboard Wengui's luxury yacht anchored off Westbrook, Connecticut. Bannon and three other men were arrested on charges of defrauding hundreds of thousands of people that donated more than $25 million to build Trump's border wall with Mexico on private land. The donations were made through Bannon's "We Build the Wall" fundraising campaign.
The indictment by the Southern District of New York accuses all four defendants of using a large part of the money for their personal gain, instead.
It said the defendants "collectively received hundreds of thousands of dollars in donor funds from 'We Build the Wall,' which they each used in a manner inconsistent with the organization's public representations."
Bannon pleaded not guilty during a court hearing Thursday. He was later released on a $5 million bond secured by $1.75 million in cash or property. Bannon's passport has been confiscated and his travel limited to Connecticut, New York and Washington, DC.
Much is known about Guo but most of it is either misleading or confusing. Guo insists he's an anti-communist Chinese patriot while some see him as a communist spy planted to deceive the West.
Guo was accused by Hongkuan Li, a well known dissident, of being a "communist spy puppy" and a "gangster" who suffers from schizophrenia. He was also accused of rape by a former employee.
Guo's source of wealth is unclear. Guo claims he made his money in real estate and securities in mainland China. He said he fled the mainland after exposing massive corruption in the central government.
The New York Times magazine, however, said Guo can't explain how he made his billions over the past two decades despite being on the run from Chinese authorities. It noted that making it rich in China through real estate development typically requires close cooperation with government officials.
The newspaper also revealed Guo has never taken a public stand against the communist Chinese government.
In the June stunt, which coincided with the anniversary of the Tiananmen Square massacre, Guo flew airplane banners over New York congratulating a "Federal State of New China" in a bizarre publicity stunt.
"From today the Chinese Communist Party (CCP) will no longer be the lawful government of China," Guo shouted into a livestream from his yacht in New York Harbor during the flyover. Bannon was by his side.
"I'm here to tell everybody that loves peace, law, humanitarian – we're going to end the Communist Party once and for all. We got hundreds of countries of support," said Guo. "From today the Chinese Communist Party (CCP) will no longer be the lawful government of China," shouted Guo into a livestream from his yacht in New York Harbor. Bannon was by his side.
