Chinese exile Guo Wengui ordered to pay US$134 million in US yacht case
- The Lady May made the news in 2020 when Trump ally Steve Bannon was arrested on unrelated federal charges while on board the vessel
- As part of a dispute over an unpaid loan, Guo was ordered to keep the yacht in US orders, but instead moved it to the Bahamas, a judge found
A US judge found Guo Wengui in contempt and ordered him to pay US$134 million to a creditor, ruling the exiled Chinese businessman moved a yacht out of US waters to shield it from debt collection.
Judge Barry Ostrager of New York state court found that Guo “exercised dominion and control” over the yacht, the Lady May, and had arranged for it to leave New York waters despite an earlier court order requiring it to remain in the jurisdiction.
The yacht made its way to the Bahamas.
The Lady May made the news in 2020 when political strategist Steve Bannon, a partner in a media venture with Guo, was arrested on unrelated federal charges while on board.
Guo, also known as Miles Kwok, was ordered to make the payment within five days or face the possibility of arrest.
John Siegal, a lawyer for Guo, declined to comment on the order.
The dispute stems from a US$30 million loan Guo got from Pacific Alliance Asia Opportunity Fund in 2008, which was never repaid and has ballooned to more than US$116 million with accrued interest over the years.
In court papers, Guo has maintained that he does not own the Lady May.
Firms tied to fugitive Chinese tycoon Guo Wengui settle US$539 million fines
The yacht was in New York waters in August 2020 when Bannon was arrested on charges that he defrauded donors to a border wall fund. He was ultimately pardoned by then-president Donald Trump.
After the yacht left the area, the judge imposed a fine of US$500,000 a day until its return, which has now grown to the figure Guo was ordered to pay Pacific Alliance.
The yacht was bought for £28 million in 2015 (US$38 million today). It was most recently anchored off the Italian coast, according to Bloomberg ship-tracking data.
