Exiled Chinese billionaire accused of fraud seeks house arrest in Greenwich

GREENWICH -- The sprawling mansion tucked behind the trees on Taconic Road has seven bedrooms, a pool and a private tennis court, according to court documents. And it's where Guo Wengui, the exiled Chinese billionaire accused by the federal government of defrauding investors of $1 billion through various enterprises, wants to be held on home detention before his case goes to trial.

Wengui, 54, who was arrested on an indictment last month under the name Ho Wan Kwok, is in federal custody at the Metropolitan Detention Center in Brooklyn, N.Y., facing several charges, including wire and securities fraud and money laundering.

Federal prosecutors said Wengui used the proceeds from the fraud scheme to purchase and maintain his homes and a 145-foot luxury yacht, which former Donald Trump advisor Steve Bannon was aboard when he was arrested in 2020 in Long Island Sound, the court documents show.

Under the terms of a motion filed by his attorneys, Wengui would put up $25 million in bond, surrender his travel documents and those of his wife and daughter in the U.S., and be subject to home detention at his mansion in Greenwich.

The terms outlined in the court memo also state Wengui would agree to GPS monitoring, not enter into any financial transactions without the government's approval or have contact with the co-defendants, as well as "24/7 surveillance by a security company."

In court documents, the government said Wengui was known to travel between his Greenwich home and others in New York City and New Jersey in a "caravan of luxury automobiles" while surrounded by "around-the-clock armed security guards," paid with the proceeds of fraud.

But the government balked at the request to allow Wengui to spend his time in the lead up to a trial at the Greenwich home, which they allege was purchased with the proceeds of fraud.

"To say the least, it would be inappropriate for Kwok to live in the palatial Greenwich estate that he maintained with the proceeds of his fraud as a means of avoiding pretrial detention," prosecutors wrote in response to the request.

The memo from Wengui's attorneys references other high-profile cases in which defendants accused of fraud were allowed out on bond, including FTX founder Sam Bankman-Fried, who is facing federal charges; former Theranos CEO Elizabeth Holmes; Bernie Madoff; and Jordan Belfort, whose exploits inspired "The Wolf of Wall Street."

His lawyers argued Wengui is not a flight risk because he is wanted by authorities in China, where he would likely face execution.

But the government suggested if Wengui was released, he could flee to the United Arab Emirates, where his business enterprises have a presence. The government noted in court documents that only two of his passports have been located, and Wengui is suspected of having as many as 11.

Wengui's lawyers argued that his detention at the Bureau of Prisons facility in New York City has left him with "limited access to his attorneys, and he is currently subject to unusually draconian restrictions in an extraordinarily dangerous environment."

In the court documents, the lawyers wrote that the facility was recently placed on "indefinite lockdown," limiting inmates' access to phones and the internet and they've had trouble communicating with their client. The defense claims it's also impossible for them to bring in the extensive documents they'll need to discuss with Wengui in his case, which they noted in the filing includes an initial raft of two terabytes of data from the government.

The lawyers wrote that it isn't "feasible -- or allowed -- for Mr. Kwok's legal team to transport the extensive documentation that must be reviewed, analyzed and discussed with Mr. Kwok over many months while seated at a small table designed for two persons located in an open room filled with other inmates."

"This constellation of circumstances is plainly inadequate for a case of this complexity, and leaves Mr. Kwok with no meaningful opportunity to participate in and assist his defense, effectively depriving him of his right to counsel," the filing states.

The government noted Wengui was "temporarily banned" from virtual attorney visits at the detention facility after he communicated with suspected family members through the legal call system, where conversations are not recorded.

"If Kwok cannot abide by the rules of the MDC, there is no reasonable assurance that he will follow any conditions of pretrial release," the government argued.