Chinese businessman arrested in New York for allegedly defrauding people out of money to buy a yacht

Exiled Chinese businessman Guo Wengui was arrested Wednesday in New York on nine charges including fraud and money laundering, according to a federal indictment. 

He allegedly defrauded investors out of hundreds of millions of dollars to purchase a mansion and a luxury yacht. 

The 145-foot luxury yacht is called The Lady May. 

According to federal prosecutors in Manhattan, New York, this scheme started in 2018. 

A financier named William Je was also charged in the alleged scheme and faces 12 federal counts including fraud, money laundering and obstruction of justice. 

The prosecutors allege that both defendants made false promises of outsize returns to investors, then lied about the use of the funds. 

They also say the two men directed $100 million toward a media company known as GTV Media Group Inc to a high risk fund.