Caixin
Jul 10, 2017 03:18 PM
SOCIETY & CULTURE

Fugitive Guo Wengui to Face Another Lawsuit Over Alleged Unpaid Debt

Fugitive businessman Guo Wengui and three of his companies face a new lawsuit in the U.S. for $1.5 billion in alleged unpaid debt.
Fugitive businessman Guo Wengui and three of his companies face a new lawsuit in the U.S. for $1.5 billion in alleged unpaid debt.

(New York) — A New York-based lawyer said he will file a lawsuit in a U.S. court on behalf of six Chinese companies and four individuals against fugitive businessman Guo Wengui and three of Guo’s companies, seeking $1.5 billion over alleged unpaid debt and compensation.

Kevin Tung, the lawyer, told a news conference in New York City on Friday his clients claim that Guo has illegally transferred assets and made illicit gains. The clients also plan to seek a court injunction to bar Guo from transferring those assets, Tung said.

This is the latest dispute brought forward by Guo’s business partners. In June, Tung also represented nine Chinese onshore construction companies and took the tycoon to the New York state Supreme Court, seeking 272 million yuan over alleged unpaid bills, according to a court filing seen by Caixin. Guo allegedly “conveyed, transferred, converted, relocated, and removed all of the assets” associated with two Chinese property projects to the U.S. to finance his “luxury life” there, the filing said.

Guo is believed to be living in the U.S. after he fled China in 2014 to avoid graft investigations that brought down close ally Ma Jian, the disgraced former vice minister of state security. Interpol has issued a “red notice” on Guo, China’s Ministry of Foreign Affairs said earlier.

Contact reporter Dong Tongjian (tongjiandong@caixin.com)

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