The Arizona Corporation Commission ordered Voice of Guo Media, Inc. (VGM) and Lihong Wei Lafrenz of Tucson to pay a $100,000 administrative penalty for defrauding investors in connection with a social media business.
The Commission found Lafrenz, also known as Sara Wei, offered and sold securities issued by GTV Media Group, Inc. (GTV), an entity controlled by Guo Wengui, also known as Miles Kwok or Miles Guo. Investors were told they would receive a return related to GTV’s social media business. However, Lafrenz and Voice of Guo Media, Inc. were not registered to offer or sell securities in Arizona.
The Commission found the respondents sold approximately $114 million in GTV stock to more than 4,500 investors from 39 countries, including U.S. investors from at least 37 states.
The Commission found the respondents promoted the stock offering in online chatrooms and through emails to investors, some of whom were accredited and non-accredited. There was no minimum investment amount to invest in the stock offering through VGM and investment amounts were generally in the amount of $100 or more.
The U.S. Securities and Exchange Commission (SEC) also filed an action against Voice of Guo Media, Inc. and Lihong Wei Lafrenz, and has already ordered VGM to pay disgorgement to the SEC in its action.