Chinese business tycoon and Bannon ally Guo Wengui arrested in $1bn fraud conspiracy

Guo Wengui, a self-exiled Chinese tycoon with close links to prominent Trumpist Republicans including Steve Bannon, has been indicted on 12 counts relating to an alleged $1bn fraud.

The charges announced by the US attorney for the southern district of New York on Wednesday include wire fraud, securities fraud, bank fraud and money laundering.

Guo was arrested early on Wednesday at his home in a building on 60th Street and Fifth Avenue in New York City. Just after noon, a fire broke out at the same address, according to the New York fire department.

ABC News reported that FBI agents were inside the $32.5m penthouse apartment when the fire broke out, and that the bureau is now investigating whether the blaze was related to the arrest.

Guo left China in 2014 during an anti-corruption crackdown led by the president, Xi Jinping.

In 2017, Guo made a series of salacious accusations about the Chinese government, accusing officials of having illegitimate children, houses and large sums of money in overseas bank accounts. The Chinese police accused him of paying associates to forge Chinese government documents and requested that Interpol issue a notice for his arrest.

Guo claimed that allegations against him in China were launched in retaliation for his efforts to expose graft.

Maximum sentences for the charges range from five years in prison, for conspiracy to commit wire fraud, bank fraud, securities fraud and money laundering, to 20 years.