Guo Wengui: US accuses Chinese tycoon of billion-dollar fraud

US authorities have charged a Chinese property tycoon based in New York with orchestrating a billion-dollar fraud.

Guo Wengui and one of his business partners, Kin Ming Je, are accused of wire fraud, securities fraud, bank fraud and money laundering.

Mr Guo is a critic of the Chinese government and an associate of ex-White House chief strategist Stephen Bannon.

A fire broke out at Mr Guo's Manhattan penthouse apartment hours after he was arrested.

A spokesman for the city's fire department said the fire was put out, no injuries were reported and the cause is still under investigation.

In an online post earlier, Mr Guo said he was handcuffed and interrogated for more than an hour.

He later pleaded not guilty in a Manhattan federal court on Wednesday and was ordered to be detained without bail.

Mr Guo goes by several aliases including Miles Guo, Miles Kwok and "Brother Seven". He was named in the indictment unsealed Wednesday as Ho Wan Kwok.

The indictment alleges that Mr Guo and Mr Je raised $1bn (£830m) from thousands of online followers who thought they were funding media businesses and an exclusive membership club.

They also allegedly used a cryptocurrency called Himalaya Coin to steal millions from investors.

Mr Guo's opposition to the Chinese Communist Party and his links to high-profile, right-wing US politicians and activists earned him hundreds of thousands of online followers, most of them Chinese people living in Western countries.

Prosecutors say he took advantage of his prolific online presence to raise money for his ventures. But instead of being invested in businesses, the funds were allegedly funnelled into personal accounts tied to Mr Guo and Mr Je.

Among other things, the money was spent on a 50,000 sq ft (4,345 sq m) mansion in New Jersey, Lamborghini, Bugatti and Ferrari sports cars, and nearly $1m worth of Chinese and Persian rugs.

Prosecutors say $100 million was put into a high-risk hedge fund and other money was spent on luxury goods including a $140,000 piano, a $62,000 television and a $53,000 fireplace log cradle holder.