New York Man Sentenced to 12 Years in Federal Prison for Multi-Million Dollar Pyramid Scheme that

[TexasTowelie]

New York Man Sentenced to 12 Years in Federal Prison for Multi-Million Dollar Pyramid Scheme that Targeted Chinese Americans


LOS ANGELES – A New York man has been sentenced to 144 months in federal prison for being a high-level promoter of a fraudulent company that solicited more than $200 million for a business that purported to market online children’s educational courses, but was in fact nothing more than a pyramid scheme.

Daliang “David” Guo, 56, of Hyde Park, New York, was sentenced at a Monday hearing by United States District Judge Dale S. Fischer.

After a seven-day trial in September 2018, Guo was found guilty by a federal jury of conspiracy to commit wire fraud, and nine counts of wire fraud for participating in the scheme that solicited investments primarily from members of Chinese-American communities in Los Angeles, San Francisco and New York City.

Guo and his co-conspirators made false representations about the Hong Kong-based company – known as CKB 168, but also sometimes known as CKBMax and Cyber Kids Best Education Limited. The false representations included claims that it generated substantial revenues from the sale of web-based children’s educational courses, that investments could be quickly liquidated for significant returns, that investors would get pre-initial public offering shares of CKB, and that the company would go public through an IPO. In reality, the only way for investors to earn any meaningful returns was for them to actively recruit new investors.

Read more: https://www.justice.gov/usao-cdca/pr/new-york-man-sentenced-12-years-federal-prison-multi-million-dollar-pyramid-scheme