郭文贵刑事案 · JUDGMENT · ECF #491

signed it, and passed it up to your clerk for your Honor's consideration. 18 19

MR. QUIGLEY: There are no other submissions from defense, your Honor, and we've signed that amended preliminary forfeiture referenced by Ms. Murray. 20 21 22

THE COURT: Mr. Quigley, have you read the presentence report? 23 24

MR. QUIGLEY: I have, your Honor.

25

The trial record is replete with testimony that Ms. Wang instructed subordinates to create business entities whose only purpose was to provide financial cover for her and her co-conspirators' crimes. Accordingly, the objection is overruled. 1 2 3 4 5

Second, Ms. Wang objects to the portion of paragraph 12 of the report that states that she "solicited" investments by promising large financial returns and other benefits. 6 7 8

As a member of the conspiracy, Ms. Wang is responsible for the actions of her co-conspirators in furtherance of the conspiracy. Furthermore, testimony from Haitham Khaled demonstrates Ms. Wang oversaw his efforts to market the entity. [Trial transcript page 2304, line 24 to page 2305, line 16.] Accordingly, the objection is overruled. 9 10 11 12 13 14

Third, Ms. Wang objects to the report's contention in paragraph 14 that she "was entitled" to millions of dollars' worth of Himalaya dollar, a purported cryptocurrency funded by victim money. 15 16 17 18

Ms. Wang argues that although she was not entitled to the Himalaya dollar, she was "allocated" the purported currency as stated in paragraph 22 of the report. 19 20 21

I agree with Ms. Wang. Probation is directed to delete the word "entitled" in paragraph 14 and substitute the word "allocated" in its place. The objection is therefore sustained. 22 23 24 25

Fourth, Ms. Wang objects to paragraph 21 of the report, which states that although she held no formal position at G/CLUBS, she exercised control over G/CLUBS' day-to-day operations and ensured that Miles Guo's instructions were implemented. 1 2 3 4 5

According to Ms. Wang, Haoran He exercised control over G/CLUBS and was senior to Ms. Wang. Ms. Wang also notes that although G/CLUBS operated out of Puerto Rico, Ms. Wang was based in New York. 6 7 8 9

The government maintains that paragraph 21 is accurate, and that, at best, Haoran He and Ms. Wang had equivalent roles. 10 11 12

Trial testimony from Haitham Khaled and Limarie Reyes establishes that Ms. Wang exercised significant control over G/CLUBS' day-to-day operation and was not subordinate to Mr. He. [See, for example, trial transcript page 2305, lines 13 to 16; page 2314, lines 16 to 24; page 2324, lines 6 to 12; page 2357, lines 1 to 12; page 2975, line 25 to page 2976, line 10; page 2990, lines 13 to 22; and page 2993, line 1 to page 2995, line 9.] Accordingly, the objection is overruled. 13 14 15 16 17 18 19 20

Fifth, Ms. Wang objects to the portion of paragraph 22 of the report that states that she "worked to transfer fraud proceeds to the Himilaya Exchange," arguing that there is no evidence to support this allegation. 21 22 23 24

25

Trial testimony established that Haitham Khaled was

Limarie Reyes was also instructed to purchase Himalaya dollars from the Exchange on behalf of G/CLUBS. [Trial transcript page 3060, line 14 to page 3061, line 16.] 5 6 7

Both of these witnesses regularly spoke with and took instructions from Ms. Wang, often with regard to transfers between various bank accounts. Accordingly, the objection is overruled. 8 9 10 11

Sixth, Ms. Wang objects to the portion of paragraph 30 of the report that states that she and her co-conspirators fraudulently obtained more than \$150 million in victim funds through the Himalaya Farm Alliance. 12 13 14 15

The government contends that Ms. Wang was an "essential member of the conspiracy" and is responsible for all its activities. 16 17 18

Furthermore, trial testimony from Ya Li describes Ms. Wang as coordinating transfers between Farm money and other Guo-related bank accounts. [Trial transcript page 1388, line 20 to page 1389, line 16.] The objection is therefore overruled. 19 20 21 22 23

Seventh, Ms. Wang objects to paragraph 34 of the report, which states that she and her co-conspirators induced 24 25

transcript page 2304, line 24 to page 2305, line 16, and page 3017, lines 14 to 21.] Accordingly, the objection is overruled. 14 15 16

Eighth, Ms. Wang objects to the portion of paragraph 36 of the report that states that G/CLUBS provided members with "no discernible membership benefits." 17 18 19

In whole, the sentence states that G/CLUBS provided members with "few to no discernible membership benefits." 20 21

Trial testimony from Haitham Khaled and Limarie Reyes supports the fact that although G/CLUBS members received very little in exchange for their membership fees, they were at times provided material benefits, such as discounts at 22 23 24 25

Ninth, Ms. Wang objects to page 37 of the report which explains that she and her co-conspirators used G/CLUBS to make fraudulent stock offerings. Specifically, the co-conspirators told Guo's followers that buying G/CLUBS memberships would entitle them to stock in other Guo-affiliated entities, like GTV and G Fashion. 7 8 9 10 11 12

Trial testimony supports the fact that G/CLUB members were promised stakes in GTV that they ultimately did not receive. [See, for example, trial transcript page 204 lines 6 to 13; page 208, line 25 to page 210, line 9; page 1016, lines 15 to 21; and page 2049, lines 7 to 18.] Accordingly, the objection is overruled. 13 14 15 16 17 18

Tenth, Ms. Wang objects to paragraph 38 of the report to the extent it suggests that Ms. Wang personally solicited G/CLUBS members and investors. 19 20 21

Paragraph 38 does not suggest that Ms. Wang made personal solicitations. It states that Wang and her co-conspirators "asked investors to purchase multiple memberships in G/CLUBS, enabling Guo, Je, and Wang to increase 22 23 24 25

the amount of money solicited." 1

Testimony from Haitham Khaled shows that Ms. Wang oversaw his efforts to market the entity, and testimony from Limarie Reyes shows that Ms. Wang was involved in efforts to allow G/CLUBS members to purchase multiple memberships. [Trial transcript page 2304, line 24 to page 2305, line 16; and page 3017, lines 14 to 15.] 2 3 4 5 6 7

Furthermore, as a member of the conspiracy, Ms. Wang is responsible for the actions of her co-conspirators in furtherance of the conspiracy. Thus, the report is correct when it states that Ms. Wang and her co-conspirators asked investors to purchase multiple memberships. Accordingly, the objection is overruled. 8 9 10 11 12 13

Eleventh, Ms. Wang objects to paragraph 46 of the report which states that she and her co-conspirators concealed Guo's funds by moving them regularly, disguising them as "loans" or "investments" and installing figurehead executives at the entities involved in these transactions. 14 15 16 17 18

At trial Limarie Reyes and Jesse Brown, the CEO of G/CLUBS and the Himilaya Exchange, respectively, testified that they lacked control over the businesses they supposedly ran and received instruction from Ms. Wang and Mr. Je. [Trial transcript page 3017, loins 10 to 21; page 3064, lines 8 to 12; page 3641, line 15; and page 3645, line 24 to page 3646, line 4.] 19 20 21 22 23 24 25

Trial testimony from Haitham Khaled, Ya Li and Karin Maistrello also established that Ms. Wang was regularly involved in moving money between various accounts related to Guo's businesses. [Trial transcript at page 473, line 16 to page 474, line 15; page 1388, line 1 to page 1389, line 16; page 1915, lines 3 to 12; page 1942, lines 2 to 15; page 1944, line 13 to page 1945, line 3; and page 1949, line 14 to page 1951, line 24.] Accordingly, the objection is overruled. 1 2 3 4 5 6 7 8

Twelfth, Ms. Wang objects to paragraph 57 of the report which describes a payment made to a bank account under her name labeled as a "director fee." Ms. Wang appears to argue that the paragraph implies that the payment was somehow wrongful, either because she was not a director of GTV or because other directors did not receive similar fees. 9 10 11 12 13 14

Ms. Wang is correct that she served as an executive director of GTV [Report paragraph 20.] However, paragraph 57 does not imply otherwise, and the government points out that Kyle Bass, a director named in the GTV private placement materials, was not paid a director's fee. Accordingly, the objection is overruled. 15 16 17 18 19 20

Thirteenth, Ms. Wang objects to paragraph 119 of the report which states that it appears as if she has the ability to pay a fine through the liquidation of assets. 21 22 23

Ms. Wang claims that because she is jointly and severally liable for forfeiture in the amount of \$1.4 billion, 24 25

This billion dollar fraud would have been impossible, impossible without Ms. Wang. As Ms. Shroff said during her opening statement in the Miles Guo trial, Guo "had a vision. Had an idea. What he did not quite have is the infrastructure." 20 21 22 23 24

And that essential component, the incredibly

25

1

2

3

She was the puppet master. She was pulling all of the strings. She hired figurehead executives, but she still controlled all of the details of the RICO enterprise. She controlled the bank accounts. She controlled the corporate structure. She directed Haitham Khaled to create Crane for the appearance of independence. She directed him to set up fake office addresses to make it seem like these were distinct entities, but in reality, everything was under her control and she was executing this in connection with Mr. Guo and Mr. Je. 4 5 6 7 8 9 10 11 12

Her daily planners over these five years reflect that she spent every single day tirelessly making this fraud possible. She spent her entire days meeting with employees associated with all of the companies in the RICO enterprise, from the Rule of Law, to GTV, to G/CLUBS, to HCHK, which is the umbrella organization that they set up after the SEC and the government were on to parts of their fraud, to Gettr, to the Himilaya Exchange, and to subsequent arms of the fraud, like @A10. 13 14 15 16 17 18 19 20 21

She also spent her time trying to obstruct the bankruptcy proceedings and working to help in that effort, including by having Miles Guo's daughter lie to the bankruptcy court. She was meticulous in the details of continuing the 22 23 24 25

The offense conduct here is horrific. The Court heard it during the Miles Guo trial, and it's been outlined extensively in the parties' submissions and in the PSR. The Court also has the benefit of the victim statements here: The victim statements during trial testimony of the victims who testified, and, as the Court said, more than 150 people who submitted letters to the Court. 6 7 8 9 10 11 12

In the government's letter dated November 24, 2024, we outlined and summarized some of the categories of harm that were caused by Ms. Wang. They include financial harm, personal hardship, threats to actual safety, and then the broader harm of undermining the pro-democracy movement. 13 14 15 16 17

It is true that Miles Guo and William Je most benefited financially from the fraud and misappropriation of the fraud proceeds, but Ms. Wang knew the money was going to Guo and to Je. She controlled the courts. We have recordings of her directing personnel to move money to those accounts. She knew that the money was not being used for the purpose that it was being told victim investors it would be used for. It was not being used to fight the CCP. It was used for mansions. 18 19 20 21 22 23 24 25

1

2

3

Ms. Wang is not a shrinking violet. Witnesses have told us and the Court she was demanding. She was exacting. She could be brutal. The Court recalls during trial the recording that Mr. Khaled introduced at the end of the meeting where Ms. Wang, who was pushing back against Miles Guo, threw remote control at a TV. She was angry not because she was trying to do something legal or the right thing. She was angry that she was getting pushback on her role, her role of making sure that the money transfer appeared legitimate. She well knew that it wasn't. She knew that her job was to make sure that everything seemed above board because that's the job that she did for five years. 4 5 6 7 8 9 10 11 12 13 14 15

The government did take her relatively lower financial profits into account in the plea that we offered, and that Ms. Wang accepted, which capped her exposure at 120 months, the statutory maximum. But the fact that she earned less than Miles Guo and William Je cannot be a substantial mitigating factor here, particularly where she is responsible for the actions not only of her co-conspirators but of herself. And, again, this fraud would have been impossible without Ms. Wang. The Court should also consider her obstructive 16 17 18 19 20 21 22 23 24

behavior as a significant aggravating factor here. As I 25

With respect to specific deterrence, her ongoing involvement for five years cuts against her claim that her dependence on and loyalty to Miles Guo "clouded her judgment." As I said, there were multiple offramps for Ms. Wang over the course of years. After the SEC entered into the consent agreement regarding the GTV private placement, which Ms. Wang signed, she could have stopped. Instead, they developed the Farm Loan Program, and they raised money through the Farm Loan Program. Then G/CLUBS got layered onto it. 15 16 17 18 19 20 21 22 23

When the government was onto the corporate structure, they created their umbrella entity HCHK. Ms. Wang was a 24 25

Finally, even after she was arrested in this case, even after she knew what the government's charges were against her, what our allegations were against Mr. Guo and Mr. Je, she continued her criminal efforts from jail. She was involved in directing G/CLUBS' members to try to secure checks valued at \$7 million worth of victim investor funds from a mailbox that was in Manhattan. 7 8 9 10 11 12 13

In her submission with respect to this particular obstructive behavior, Ms. Wang says she would have been "more self-interested and prudent to have stepped back" from the @G entity operation after her arrest. It would not have been more prudent to have done so; it would have been non-criminal. Yet again, even after her arrest, after five years of her extensive involvement, she did not do the right thing. She continued to perpetuate the fraud. 14 15 16 17 18 19 20 21

Ms. Wang is very credentialed. She is bright. She is capable. That is not a mitigating factor; it's an aggravating one. She was capable of coming here and becoming a productive member of society. The United States welcomed her when she was 22 23 24 25

And she still hasn't taken full responsibility for her actions. She does not appear to express remorse for the victims here, the victims that she actively defrauded; that she and Miles Guo and William Je targeted. She is unhappy to be in this position. She says she is sorry for what she has done, but nowhere in the submissions that Ms. Wang has given in connection with this sentencing does she truly acknowledge the scope of harm that is reflected in just a handful of those 150 plus victim statements. She destroyed people's lives. This continues to have reverberating effects on the victims. 9 10 11 12 13 14 15 16 17 18

The government strongly recommends that the Court impose the statutory maximum sentence here of 120 months. It's necessary because of the seriousness of the offense conduct. It's necessary to promote just respect for the law of someone who continued to violate the law, knowing full well that the SEC and the government were investigating this action; who continued to violate the law even after she was arrested and 19 20 21 22 23 24 25

Her involvement in this offense, as we said in our sentencing submission, came in the series -- came in the midst of deep personal crises, and, frankly, extraordinary personal crises. And it's not disputed that at the time this conspiracy began, she was being actively targeted by the Chinese security services; that she was repeatedly hacked; that highly sensitive personal information of hers was put up on the internet where it remains, including by an individual who submitted a victim statement in this case, statement 146; that she was cut off from her family. These facts are highly unique to Ms. Wang, and they are, frankly, I think, extraordinary. I think it's fair to say that being targeted by a state security service and regularly hacked is not a common occurrence for a defendant being sentenced in this district, or anywhere for that matter. 1 2 3 4 5 6 7 8 9 10 11 12 13 14

THE COURT: Nor is this a common crime.

15

MR. QUIGLEY: That's fair, your Honor. But pointing to those facts and considering those facts is not seeking to endorse some bizarre vigilante system of justice, is what the government called it in their sentencing submission, but they're critical to her state of mind at the time of the offense. 16 17 18 19 20 21

THE COURT: Are you saying that the guidelines reflect a bizarre vigilante system? 22 23

MR. QUIGLEY: No. That was the phrase the government used in their sentencing submission to describe our arguments 24 25

It's designed to mess around with people's minds and people's heads. 18 19

As Dr. Atkin Source Smith noted in her report that, and we submitted with our sentencing submission, Ms. Wang was left in constant fear and was suffering chronic trauma consistent with this regular harassment, and consistent fear for her safety and that of her family's. 20 21 22 23 24

25

So it was in that context that Ms. Wang latched onto

Ms. Murray talked about offramps. Ms. Wang didn't have an offramp. She couldn't go back to China. She had no status in the United States. Her asylum application was being run through her employer and his attorney. 5 6 7 8

THE COURT: So this was her only option.

9

MR. QUIGLEY: I think she didn't have many other options, your Honor, no. She couldn't go back to China. She didn't have any legal status here. She was cut off from her family. I think -- there weren't many offramps to her. I disagree with that. I think that context is important. And it's critical context for understanding why she was involved in an offense, from which indisputably she gained very little and has already paid for it significantly, and which she deeply regrets. 10 11 12 13 14 15 16 17 18

And I disagree with Ms. Murray that she hasn't shown regret or remorse. That's in her sentencing letter. It's reflected in Dr. Atkin Source Smith's report. And you'll hear from Ms. Wang in a few minutes about the regrets she feels about this. She deeply regrets the pain caused to people who gave money to Mr. Guo and his organizations. She's happy that -- and credit where credit is due -- the government has 19 20 21 22 23 24 25

this before, but this is not someone who was living a high life as a result of the fraud. 13 14

THE COURT: Didn't she live in the Upper East Side in the Sixties? 15 16

MR. QUIGLEY: She did live in an apartment, your Honor. That money and the government -- that money -- that apartment was not paid for with fraud proceeds. In fact, the government initially listed in their indictment in the S3 that that apartment was paid for with fraud proceeds. After we filed a bill of particulars or after your Honor granted in part a bill of particulars asking for wire transfers, they showed she received that money before the GTV offering, before any of the fraudulent conduct. It was not paid for with fraud 17 18 19 20 21 22 23 24 25

I think in considering what weight to attribute to some of those letters, the Court should and can consider that some of those allegations in there are unsupported. They also say very little by and large about Ms. Wang. They talk a lot more about Mr. Guo, considering their relative roles in the conspiracy. 11 12 13 14 15 16

THE COURT: I don't understand the prosecution to be alleging that she continued illegal conduct while in prison. Am I correct? 17 18 19

MS. MURRAY: Your Honor, we are alleging that she did in April of 2023. Mr. Quigley is correct. We have recordings with HCHK employees who were doing business on behalf of G/CLUBS where they said that -- first hinted at somebody had directed hem to reach out to a G/CLUBS employee to secure the checks. And then in subsequent recorded conversation said that 20 21 22 23 24 25

Mr. Quigley is correct, we're not alleging anything after that event, but that is a post incarceratory criminal event. 5 6 7

MR. QUIGLEY: Your Honor, that was -- look, we don't object to the obstruction enhancement. We consent to it. I think we would dispute some of the characterizations of the inferences that can be drawn from those recordings. That said, this was a subject that was litigated before I represented Ms. Wang in connection with her bail application. We don't - the Court may find it's on that. We are not intending to re-litigate it here. 8 9 10 11 12 13 14 15

I think the point for us is in considering what weight to put to the victim letters that actually speak about Ms. Wang. Many of the victim letters don't really say anything about her at all. In considering what weight to attach to the ones that actually speak about her, several of them do say she has continued and continues to run the conspiracy from prison. And my point is there is no evidence of that. That is false, and in suggesting she is doing that up to the present time. 16 17 18 19 20 21 22 23

THE COURT: So let me make clear that I would not consider false allegations, allegations that are not being made 24 25

MS. MURRAY: Again, your Honor, I would just say there were pretrial resolution discussions that well predated the plea offer. That was the first written formalized plea offer after discussions with Mr. Quigley, but there had been broader discussions about a pretrial resolution. 4 5 6 7 8

9

THE COURT: Go ahead, Mr. Quigley.

MR. QUIGLEY: So I think where does that leave us, your Honor? I think you have a defendant who indisputably participated in this offense in the midst of a deep personal crisis, in the context of being targeted by a foreign security service, who took in less than one-tenth of one percent of what the government claims is the loss amount in this case; who has already faced a significant period of incarceration in MDC. She has been at MDC for 22 months. I don't need to belabor the conditions at MDC over the last 22 months. That's a significant amount of time in and of itself. It is, frankly, a long time for a defendant who didn't go to trial to spend on pretrial detention, presentence detention, who will to face - and I am not going to continue to belabor this point because we set it out in our sentencing submission, but who will continue to face conditions that are more punitive than a similarly situated U.S. citizen. 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25

She will not be assigned to a camp, unlike many white collar criminals. She will almost certainly face an additional period of incarceration in ICE detention, whether or not she gets an asylum application that is granted after this. And even in a best case scenario where she is not deported back to China where she would face further imprisonment, and potentially worse, she will have financial penalties that will follow her around for rest of her life. 1 2 3 4 5 6 7 8

I mentioned that the government, again, to its credit, has seized over a billion dollars in this case. That will go towards that \$1.4 billion money judgment. It's also true though that to the extent there is a shortfall, that shortfall will, as a practical matter, fall on Ms. Wang. Mr. Je is never coming back to the United States. Mr. Guo is bankrupt and unlikely to pay that. Even if there is a \$10 million shortfall -- and I don't disagree with your Honor that a hundred thousand dollars a year is not a small salary by any means, but being liable for a \$10, \$15, \$20 million judgment for the rest of your life is a significant financial penalty with any salary. So She will continue to face penalties both incarceratory and financial for the rest of her life. 9 10 11 12 13 14 15 16 17 18 19 20 21

And this is not someone, I submit, for whom a 120-month sentence is necessary under the circumstances, particularly when you consider the final 3553(a) factor. I would like to talk about 3553(a)(6), which is the need to avoid 22 23 24 25

Ms. Wang is not Elizabeth Holmes, and I think even the government in their sentencing submission recognized that. She is not -- 120 months will be longer than the sentence that Judge Swain imposed on Joann Crupi, who was essentially Bernard Madoff's chief-of-staff. She got seven years. Again, she went to trial, and personally benefited from her decades-long participation in the Madoff Ponzi scheme, which was the largest Ponzi scheme in history. In fact, while the investors here may get -- hopefully will get paid back and made whole fairly soon, the government issued a press release last week, 16 years after Mr. Madoff's arrest that they had issued a final distribution to the Madoff investors. As serious as this crime is, this is nowhere near the Bernie Madoff scheme. 11 12 13 14 15 16 17 18 19 20 21 22 23

THE COURT: So in the Holmes scheme and the Madoff scheme, were investors told that money would go toward the 24 25

## promotion of democracy? 1

6

25

MR. QUIGLEY: No. They were told it would go toward good health in the Holmes case; that it would go towards a revolutionary blood testing kit that people could use to determine whether they had cancer or HIV or be pregnant. 2 3 4 5

THE COURT: Go ahead.

MR. QUIGLEY: I think this case is a akin to, as we say in our sentencing submission, akin to the OneCoin prosecution. That was a fraud that took in over \$4 billion more than the fraud here. Ms. Murray began her statement today by describing Ms. Wang's importance and significance to the fraud. The attorney who was sentenced in that case, the attorney for Ms. Dilkinska was described by the government - similarly described by the government in its sentencing submission as "an integral member that of fraud." She pled to essentially an identical plea agreement earlier this year to Ms. Wang: Two 371s, a wire fraud, and a money laundering count capping her statutory exposure to ten years. The guidelines range -- otherwise applicable guidelines range would have been 43 life prisonment. Ms. Dilkinska pled to an obstruction of enhancement, and Judge Ramos sentenced her to 48 months. 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

THE COURT: Is that a case where the defendant or co-conspirator was portrayed as a heroic figure pursuing justice for millions of other people? 22 23 24

MR. QUIGLEY: I don't know about that, your Honor, but

MS. MURRAY: If I may briefly respond to that point, your Honor? 5 6

I was one of the prosecutors on the OneCoin case and also a prosecutor of Ms. Dilkinska. I would say there are very many differences between these two defendants. Mr. Quigley is correct that's what the government's sentencing submission said, Ms. Dilkinska was a lawyer, but in that fraud scheme, it is correct it was marketed as a cryptocurrency. It was marketed as a way for people to make money, to make investments. There was no democracy and no political angle associated with it. 7 8 9 10 11 12 13 14 15

It was also a different scheme in the sense that it was structured as a multilevel marketing scheme, so some of the people who were involved and were investors were actually conspirators. They weren't the same degree of vulnerable victims to any degree that we have here. Some of them were. Some of them believed they were buying into a cryptocurrency. But a lot of people who were involved in the OneCoin scheme were involved knowing that what they were doing was making money in kind of mini-Ponzi scheme. 16 17 18 19 20 21 22 23 24

25

The other distinction that I would make that I think

And then, finally, again, just really emphasizing the distinction here of the nature of the victims who were being targeted by this broad conspiracy and the absolute gulf between what they were being told their money was going to be used for and what it was in fact used for. 10 11 12 13 14

THE COURT: My understanding is that there are many Chinese people, both in China and elsewhere who have passionate feelings against the Chinese government and who support a change, who support democracy, and who were inspired by the messaging of Mr. Guo, and that that was a significant reason that they turned over their money to this fraud scheme. And it's just an entirely different way of persuading people to turn over their money because they had such deep hopes that the political system in China, which is repressive, that that system would be challenged and possibly changed. It's very different from having the motivation of doubling your dollar or 15 16 17 18 19 20 21 22 23 24 25

a safe investment. 1

MR. QUIGLEY: **I hear your Honor. I understand what you're saying. But I also think, you know, certainly with GTV, certainly with the Himilaya Exchange, which was a crypto investment, people were looking -- there's nothing wrong with that, but people were looking to not only contribute to the Chinese anti-Communist movement, they were also looking to make money. Again, there's nothing wrong with that, but I don't think it's that different. I would just say in terms of Ms. Dilkinska's, role the bare reality is, you know, she was required to plead to the exact same three-point leadership enhancement that Ms. Wang was required to.** 2 3 4 5 6 7 8 9 10 11 12

MS. MURRAY: I just want to state the government's objection to the phrase "required to plead to." 13 14

MR. QUIGLEY: Sorry. Pursuant to a plea agreement that was signed by the government, she pled to a -- the stipulated guideline range in that case pursuant to a plea agreement extended by the government included the exact same three-point leadership enhancement that Ms. Wang got. And the government's sentencing submission alleged that Ms. Dilkinska "created and managed shell companies that were used to hold properties in another co-conspirator's name, open bank accounts, launder proceeds from the scheme." Very similar conduct to what Ms. Wang is accused of doing here. And I think a 48-month sentence in that case and a 120-month sentence in 15 16 17 18 19 20 21 22 23 24 25

So I just want -- well, I think one last point, victim letters, your Honor. Again, I think this has already been covered, but I don't think Ms. Wang should be held responsible for kind of the recent infighting among members of Mr. Guo's movement. There is a lot of back-and-forth, especially in the more recent victim letters about people, you know, retaliating against people, things like that. Ms. Wang wasn't involved in any of that. She hasn't been involved in any of that. Frankly, she finds attacks on people's families as was set out in the government's verbal attacks and rumor-mongering about salacious details of their personal life, she is, frankly, offended by that, having been for years a target of similar rumors about herself. I'm not sure your Honor was going to consider that at all, but it's a point that I noted. 7 8 9 10 11 12 13 14 15 16 17 18 19 20

THE COURT: So let me make clear that I am basing my sentencing decision on the evidence that was presented at trial. I listened very carefully to witness testimony. I am also basing it on what I have learned from the probation report, and, of course, applying the guidelines and other laws 21 22 23 24 25

|--------------------------------------------------------------------|----------------------------------------------------------------| | 1 | that apply to sentencing. | | 2 | Go ahead. | | 3 | MR. QUIGLEY: Thank you, your Honor. | | 4 | So, again, for all these reasons, I think the | | 5 | defendant, who did not substantially personally benefit from | | 6 | the scheme, became involved in the scheme and in a highly | | 7 | unique and extraordinary system of personal crises which were | | 8 | designed to cloud her judgment intentionally. So we think a | | 9 | sentence of approximately 48 months similar to what | | 10 | Ms. Dilkinska got is sufficient but not greater than necessary | | 11 | to serve the legitimate purposes of sentencing. | | 12 | THE COURT: Ms. Wang, would you like to say something? | | 13 | THE DEFENDANT: Yes, your Honor (English). Yes, your | | 14 | Honor. | | 15 | THE COURT: One moment, please. I do understand that | | 16 | there are victims who are interested in making statements. Is | | 17 | that correct? | | 18 | MS. MURRAY: I am not certain that we have confirmed | | 19 | their attendance, but our understanding was there was at least | | 20 | one victim who intended to come, so I guess the government | | 21 | would ask. | | 22 | THE COURT: Is there someone here who is a victim who | | 23 | would like to speak? | | 24 | MS. MURRAY: Your Honor, the name we had was Forest | | 25 | Zhou. I see Ava Chen is raising her hand. She is not who the |

THE COURT: So sir, I want to explain to you the law that applies to victims' statements. 7 8

The Crime Victims Act defines a crime victim as a person directly and proximately harmed as a result of the commission of federal offense. 18 United States Code, Section 3771(e). The requirement that the victim be directly and proximately harmed encompasses the traditional but for and proximate cause analyses. *In Re Rendon Galvis*, 564 F.3d 170, 175 (2d Cir. 2009). 9 10 11 12 13 14 15

The necessary inquiry is a fact specific one. A person is directly harmed by the commission of a federal offense where that offense is a but for cause of the harm *Morris v. Nielsen*, 374 F.Supp.3d. 239, 252 (E.D.N.Y. 2019). A person is proximately harmed when the harm is a reasonably foreseeable consequence of the criminal conduct. 16 17 18 19 20 21

Is it your position, sir, that you were directly harmed by Ms. Wang's criminal conduct? 22 23

MR. ZHOU: No. 24

25

THE COURT: Is it your position that there was --

|----|--------------------------------------------------------------------| | 1 | THE COURT: What is your name? | | 2 | MS. CHIN: My legal is Legia (ph) but people refer to | | 3 | me as Ava. Thank you. | | 4 | THE COURT: Do you consider yourself to have been | | 5 | directly harmed by Ms. Wang's criminal conduct? | | 6 | MS. CHIN: Yes. Based on what I heard, you talked to | | 7 | Forest Zhou, I will be different. So my answer is yes, and I | | 8 | provided my investment, I invested \$200,000 in GTV and also | | 9 | G/CLUBS, and still my fund is withheld, and I have been | | 10 | suffering financial consequences because those money are taken | | 11 | away from me. | | 12 | THE COURT: Do you believe that this loss of money was | | 13 | a foreseeable consequence of Ms. Wang's criminal conduct? | | 14 | MS. CHIN: Because she pled guilty, so I would say | | 15 | yes. | | 16 | THE COURT: All right. Go ahead. | | 17 | MS. CHIN: I want to just outline as a victim I want | | 18 | to share with you -- and I really want in opening to say thank | | 19 | you because the reason why as a victim I have a platform to say | | 20 | this is because I have to thank the American people because I'm | | 21 | Canadian. Again, I have to thank the justice system and the | | 22 | Honorable Judge, you, today to give me the opportunity. | | 23 | I want to highlight three points today that I would | | 24 | speak directly why you need to consider lessening the sentence, | | 25 | the 120 months that the prosecutor just asked in support before |

you consider lessening.

1

Three points I'm going to make is, first of all, Wang's contribution to the United States. And the second is her suffering and the true suffering evidenced by court documents found the CCP spies. And the last one I'm going to talk about personal touch because I worked with Ms. Wang briefly. I will tell you what I learned in terms of her character as a person at the ending. 2 3 4 5 6 7 8

So the first point, the contribution to American society, and I wanted to refer you to the Rule of Law Foundation. And Ms. Wang is a member of the Rule of Law foundation, and if you recall when the breakout of the pandemic happened in 2020, when the City of New York was under lockdown, and the Rule of Law Foundation basically acquired a large amount of personal protection equipment, PPE, including N95 masks and also other Airgel products and a lot of those things was basically arranged personally by Yvette Wang, and what we refer to as Himalaya Embassy and risk of her own health, she basically moved all the -- the goods and shipping them to hospitals of New York City and donating them to the NYPD police officers. And all of those things can be checked. These are the true. And there are court documents reflecting what I just say, what I just shared her. 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23

And not only on that, she also managed to mail out to the dissident community, because we talked a lot about 24 25

If you recall, there is a lot of public reporting about it. The Chinese Communist Party not only, you know, created in the Wuhan lab which by the final report of the COVID-19 special committee, the house committee that just released the report, but also the CCP vacuumed out all the personal protection equipment in the world, okay, so they can using that as bargaining chips with the United States, with the world's government to say, hey, you have to listen to me because I now hold all the PPE. I'm the king. 7 8 9 10 11 12 13 14 15

So in that backdrop, Rule of law is the only foundation which Yvette Wang is a member of, and personally put at risk, and go taking care of all of those boxes and boxes and boxes of millions of masks and just spread it over to not only New York City residents but also to the dissident community. So that's contribution number one I want to highlight for you, your Honor. 16 17 18 19 20 21 22

The number two point is suffering. And I want to refer you to legal cases that Mr. Wang brought against a number of -- we refer fake, phony pro-democracy activists. And one of 23 24 25

In that legal document I discovered she was a victim, a constant victim by, not only hacking, harassment, stalking and also threatening for people taking her life basically. And that's not according to me; that's according to the court. Because of that legal case, the judge -- I forgot her name, but the judge made a ruling to put a protection order on Wang against those phony pro-democracy activists. One of them is Xiong Xianmin, and there is an actual protection order. 6 7 8 9 10 11 12 13

But I wanted to refer to the documents basically in this trial, in this docket in this criminal fraud trial, document number 89, that document, there's 25 pages evidence of who the person I just referred to Xiong Xianmin has been attacking Miles Guo and particularly Yvette Wang. So the evidence is all there. This started actually around 2017, prior to the protection order was issued against that Xiong Xianmin, the fake pro-democracy activist. I encourage you to check that. 14 15 16 17 18 19 20 21 22

But not that -- not only they included in that evidence, that 25 pages contains his online cyber-bullying against Wang from 2017 July, all the way to 2018 December. But 23 24 25

So as the trial, as the investigation going on, as Wang has been detained, this person, along with another group of fake pro-democracy activists has been harassing, threatening and smearing and defaming Wang Yanping. She so suffered greatly. Not only as the defense counsel mentioned, she was isolated. You read her letters addressed to you, your Honor. She can't -- she has an only child, but she would not be able to basically raise -- raise him, and she cannot -- she has today, she cannot see her father and mother who now already passed on. So she suffered greatly. Why? Because she started joining the movement, and she followed Miles Guo like I did. Many of my brothers and sisters here sitting together, we don't challenge the fact she pleaded guilty. We respect the law. 6 7 8 9 10 11 12 13 14 15 16 17 18

But I wanted to say that leading to my personal -- my last point is how do I see Wang? And I see her, the perception I have, the impression I have about Wang didn't change. I worked with her very briefly, probably three months back in 2022, only three months. But I saw her as a warm-hearted, as a feisty fighter against the Chinese Communist party. You said it. The CCP is very repressive. No doubt about it. But CCP 19 20 21 22 23 24 25

THE COURT: So I am very familiar with the depth of repression of the Chinese government. 4 5

MS. CHIN: Thank you. The reason why I wanted to say is the personal touch is not because I worked with her, I know who she is, she is reliable, she's trustworthy, she's tough, and feisty. And that didn't change a bit for this case. Although she pledded (sic) guilty to the two charge, but I want the one thing I want pointed out, the reason I truly appreciate her is because I'm not talking about the details about this case, this fraud case, but I'm talking about the importance and the significance of having a social media news platform like GTV. The reason why I brought these documents today is because I want to leave with you, Judge, if you wanted to, but I want read one sentence out of it and just show you the CCP has already controlled every Chinese language media in the United States. And this is basically said not by me, by the House Committee of Oversight and Accountability Committee that released a report on October 24, 2024. 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

THE COURT: So I understand that your position is that you admire Ms. Wang and you admire GTV. Is there anything further? 22 23 24

25

THE DEFENDANT: I just want to say that -- yes, I do.

But I want top say the most important thing for me is I find my brothers and sisters in a safe place. I'm no longer alone because I'm scared because CCP is powerful. But finding the sisters and brothers in G/CLUB make me brave. That's why I can stand here and I say that I love her. This will not change a bit. And I will say the brothers and sisters sitting there would agree with me. This is what the value of G/CLUBS and she has suffered enough. MDC. We all know what MDC looks like. I just read the news this year September, the other judges had basically eliminated the sentence for the people who was committed, and he said if he is going to be serving an of sentence in MDC, then he is free solely wanted you to -- 6 7 8 9 10 11 12 13 14 15 16 17

18

25

THE COURT: Thank you.

MS. CHIN: -- have consideration for lessening the sentence because she has done so much for Chinese people, and she has made so much contribution to U.S. citizens. And I want you to consider that, and please from us. And I wanted to share all the documents. I want to thank you for the prosecutors who timely working on this case. 19 20 21 22 23 24

THE COURT: Time out. Thank you. You may step back.

to battle and survive with constant hacking and attacks, to prevail with millions of users and subscribers. But, unfortunately, because of me, my poor judgment and wrong decision under my personal crisis, very painfully, your Honor, I had be seeing GTV struggle and eventually get shut down. 16 17 18 19 20

pro-democracy and anti-Chinese Communist party outlet. Me

13

14

15

25

personally, I'd be saying this media outlet start from nothing,

zero, to create its first cult to overcome numerous obstacles,

I fully understand and appreciate the GTV investors, their faith and G/CLUBS members, their passion for this cause, I have befailed (ph) them. That hurt me the most. And I am so sorry for that. 21 22 23 24

I do share the same disappointment to view this whole

Second, your Honor, I feel I have to say this here. It's a very straightforward personal clarification. For years and years I've been accused by government after government, even including in the bail litigation of this case, saying I abandoned my child. I betray my family. I want your Honor and my family and entire world to hear me here loud and clear. I never abandoned my son. I never betrayed my family. I never did that. 9 10 11 12 13 14 15 16

My son is turning to 12 this year. He has been taken away from mother for ten years. My father's dying wish is to pray his only daughter is safe and alive. The rest of my family have been arrested, interrogated under close surveillance, living in fear until this very second. I have paid an extremely high price with my family together, your Honor. I will never give up loving them and fighting for them. In last ten years, your Honor, I am no hero. I am just a common, regular woman. I am a working woman. I have 17 18 19 20 21 22 23 24 25

Again, as I said, your Honor, I really appreciate you just said here, there are so many Chinese people are inspired and fighting for democracy. What I want to say is that this is a personal sorry for me that these ten years is not my choice, your Honor. I stuck in this for ten years. I never live in a comfortable, happy life. But even only by myself at the end I'm fighting for my family. I'm going to do that because they're my family. I will fight for them until my last breath. I will never give up. 9 10 11 12 13 14 15 16 17

In the end, your Honor, I have been at MDC for 21 months and 21 days. Besides always trying to make best use of my time here -- there by reading, learning, helping other fellow inmates, working in the unit as a volunteer constantly. The most often things I be doing is to reflect my actions and reckon what happened before. There is no excuse, there is no any personal life allowed me to break the law. I understand. I learned my very heavy lesson. I respect it a hundred 18 19 20 21 22 23 24 25

Seventh, the need to provide restitution any victims of the offense. 3 4

Ultimately, I'm required to impose a sentence that is sufficient but not greater than necessary to comply with the purposes of sentencing that I just mentioned. 5 6 7

I have given substantial thought and attention to the appropriate sentence in this case. 8 9

Probation recommends a guideline sentence of 120 months or 60 months for each offense to run consecutively. The government also advocates for a sentence of 120 months. Ms. Wang seeks a below-guideline sentence of less than 48 months. 10 11 12 13 14

For a period of approximately five years, Ms. Wang knowingly participated in a conspiracy with Miles Guo and William Je to defraud thousands of victims out of more than one billion dollars. Relying on Guo's massive online presence, the conspirators targeted his followers by promising them outsized financial returns and benefits for investing in various fraudulent businesses and programs. Many of the victims were led to believe that the money they gave Guo and his conspirators would further pro-democracy efforts in China. In fact, Ms. Wang and others deliberately misappropriated the money to line the pockets of Guo, his family, and the other 15 16 17 18 19 20 21 22 23 24 25

The conspirators knew that what they did was wrong, and they went to great lengths to conceal their illicit activities. At Guo and Wang's direction, the conspirators created shell companies and stored and moved their victims' money across hundreds of bank accounts held in various names. 3 4 5 6 7

Guo, Je, and Wang caused their victims immense harms. The Court has received dozens of letters and emails from around the world recounting how victims continue to suffer from the devastating losses they faced at the hands of the conspirators. Some of the victims believed that their money would go toward initiatives designed to promote democracy in China. Others invested tens or hundreds of thousands of dollars in the hopes of improving their finances and were shocked when they ultimately lost their homes and retirement savings. 8 9 10 11 12 13 14 15 16

The victims have not just experienced financial hardship. Many have lost relationships with loved ones because of their participation in the scam. The Court has received letters from people whose partners left them and from parents whose children no longer talk to them because they fell prey to Guo, Je, and Wang. These victims and others continue to experience depression and severe psychological distress due to the actions of the co-conspirators in this case. 17 18 19 20 21 22 23 24

25

1

2

Although Ms. Wang was not the senior-most leader of

For her participation in the scheme, Ms. Wang was purportedly paid a yearly salary of between \$231,900 and \$313,961, although these figures likely underestimate the extent to which she benefited personally from the massive fraud. 14 15 16 17 18

A few mitigating factors are present: Ms. Wang benefited far less from the conspiracy than did Miles Guo or William Je. In addition, trial evidence suggests that Ms. Wang sometimes disagreed with Mr. Guo, but Mr. Guo had the final say. 19 20 21 22 23

I also take into account the length and conditions of Ms. Wang's pretrial detention. Ms. Wang has spent 24 25

I similarly account for the prison conditions Ms. Wang will face post-sentencing. As a Chinese national, she is not eligible at placement at a minimum-security camp where many nonviolent offenders serve their sentences. These prison camps, despite their name, are often considered safer and more desirable than higher-security correctional institutions. In addition, after serving her sentence, Ms. Wang will likely be transferred to ICE custody. If she is ultimately required to return to China due to her immigration status, she may face detention there. 6 7 8 9 10 11 12 13 14 15

Finally, I account for the fact that Ms. Wang has taken responsibility for her actions as reflected by her guilty plea and her statement here today. If there is ever a day in a person's life when she is entitled to be judged on the basis of the entirety of her background and contributions, it is at sentencing, and Section 3553(a), in directing the Court to consider the history and characteristics of the offender, is consistent with that. The sentence I will impose today will consider the totality of Ms. Wang's conduct. 16 17 18 19 20 21 22 23 24

25

I conclude, for all the reasons stated, that a

It is recommended that you be supervised by your district of residence. 10 11

These special conditions of supervised release I just described are reasonably related to the nature and circumstances of the offense and the history and characteristics of the defendant. Ms. Wang is not a U.S. citizen. The payment of restitution and forfeiture compliance are mandatory. The offense involved a massive fraud involving complex financial transactions and fictitious entities, and these conditions will assist probation in protecting the community from further crimes of the defendant and ensure that the defendant complies with her restitution obligations. 12 13 14 15 16 17 18 19 20 21

Now, I understand that the order of restitution has been handed up to the Court, is that correct? 22 23

MS. MURRAY: Your Honor, we've handed up the consent order of forfeiture. With respect to restitution pursuant to 24 25

THE COURT: So determination of restitution is deferred for a maximum of 90 days after sentencing and in accordance with 18 United States Code, Section 3664(d)(5). 13 14 15

I'm required to remind you, Ms. Wang, you must forfeit to the United States pursuant to 18 United States Code, Section 981(a)(1) And 28 United States Code, Section 2461(c) all property that constituted or was derived from proceeds traceable to the commission of the offenses, including a sum of money equal to approximately \$1.4 billion in U.S. currency and the specific assets listed in the amended consent order of forfeiture, which I shall sign. 16 17 18 19 20 21 22 23

Does either attorney know of any of legal reason why this sentence should not be imposed as stated? 24 25

|----|--------------------------------------------------------------------| | 1 | Obviously, you're extremely intelligent and capable. Many of | | 2 | the other individuals that are incarcerated along with you have | | 3 | not had the advantage of a higher education and can greatly | | 4 | benefit from your assistance, and so I ask that you dedicate | | 5 | yourself to offering that. | | 6 | THE DEFENDANT: Yes, your Honor. That is what I have | | 7 | been doing along the way. | | 8 | THE COURT: All right. That brings our hearing to a | | 9 | close. | | 10 | The matter is adjourned. | | 11 | (Adjourned) | | 12 | | | 13 | | | 14 | | | 15 | | | 16 | | | 17 | | | 18 | | | 19 | | | 20 | | | 21 | | | 22 | | | 23 | | | 24 | | | 25 | |