Guo Wengui sued by investors in media company

Wealthy Chinese businessman Guo Wengui, an outspoken critic of China’s government, and several others are accused of breaking state securities laws in a class-action lawsuit filed in Arizona.

The civil complaint was filed in late June in the U.S. District Court for the District of Arizona. The plaintiffs claim to have tried to invest in GTV Media, a private media company linked to Guo, only to never see any proof that their money actually went toward the business.

Attorneys for Guo and other defendants called the allegations “unfounded” in an email to CNBC on Monday.

GTV’s website shows Guo as one of their main attractions, and research done by Graphika notes that the company is part of the businessman’s larger media empire.

“Each of these investors have not received a single cent back in return for the investment of their hard-earned money, even upon request for redemption, indicating the investments were anything but real, let alone risk-free or lucrative,” the filing says. “Nor have the investors received anything resembling proof of their investment or ownership interest. Instead, they are left with worthless paper or none at all.”

The legal fight also could provide a glimpse into the way funds were raised for GTV.

The Wall Street Journal reported last year that the fundraising efforts were being investigated by the Securities and Exchange Commission and the Federal Bureau of Investigation. The investigators were reportedly investigating GTV Media for possibly violating securities laws.

GTV Media said in a statement to the Journal at the time that it moved ahead with the private placement under the advisement of its attorneys and “all of the raised funds are intact.” The company also said it was ready to comply with federal authorities.

Another Journal report said Guo himself was being investigated by the FBI. A lawyer for Guo told the newspaper at the time that Guo had not been contacted by the FBI.

The FBI and SEC did not respond to requests for comment before publication. Federal investigators haven’t publicly announced any charges.

Guo has been a vocal critic of the Chinese Communist Party and has used his live digital shows on GTV to blast the heads of the Chinese regime. Guo fled China in 2014 in anticipation of corruption charges. After he criticized China’s leaders, warrants were reportedly issued for his arrest on charges that included corruption and bribery. Guo has denied the charges.

Former Trump White House chief strategist Steve Bannon has been close to Guo for years. Bannon was involved with the media group, the Journal has reported. The newspaper also previously reported on financiers of the same media organization who also allege they were defrauded. Bannon is not listed as a defendant on the Arizona-based class-action suit. A spokesperson for…