(Yicai Global) Nov. 2 -- The founder and former chairman of Kuailu Investment Group who fled to the US from China in 2017 to evade accountablity for a CNY43.4 billion (USD6.8 billion) illicit fundraising racket was arrested last week at a cryptocurrency event in Las Vegas, according to US authorities.

57-year-old Shi Jianxiang has been indicted on two counts of fraud and misuse of US non-immigrant visas, the US Attorney’s Office Southern District of Florida said. If convicted, he faces up to 10 years in prison and a maximum fine of USD250,000.

Shi lied in order to obtain two non-immigrant visas, the office said. He had an alternate identity and travel documents under the name “Long Niu” which he used to enter the US. He has been living in California and Nevada as “Morgan Shi” since leaving China.

Shi is the main culprit behind the Kuailu fund-raising hoax which saw two other ringleaders handed life sentences by a Chinese court in 2019. Shanghai-based Kuailu was fined CNY1.5 billion (USD222 million) for using illicit methods to try and raise CNY43.4 billion in funds that fleeced 40,000 investors out of CNY15.2 billion (USD2.4 billion).

Editor: Kim Taylor