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In the latest twist of the Guo Chapter 11 NY Law Firm saga, the court-appointed trustee for Chinese exile Miles Guo’s bankruptcy estate has secured a settlement that recovers $70,000 from a New York immigration firm, court filings revealed.

The settlement, representing a 61% recovery on the $115,600 originally sought, was disclosed Friday by trustee Luc A. Despins. The deal emerged after U.S. Bankruptcy Judge Julie A. Manning authorized him to keep the terms hidden for 180 days, citing the need to avoid influencing other ongoing adversary proceedings.

Allegations Against the Firm

Despins alleged that Wildes & Weinberg PC unlawfully received postpetition transfers from Golden Spring (New York) Ltd., which he described as one of Guo’s alter egos. According to the trustee, the transfers were made without bankruptcy court approval and lacked any legitimate basis under federal bankruptcy law.

This settlement mirrors several other clawback deals Despins has quietly struck, many of which remain sealed for half a year to protect parallel negotiations.

Guo’s Mounting Legal Troubles

Miles Guo, also known as Ho Wan Kwok, has been a lightning rod of controversy. After fleeing China, where officials accused him of corruption—a charge he denies—Guo filed for Chapter 11 protection in February 2022. At the time, he reported liabilities exceeding $374 million and assets of just $3,850.

But bankruptcy isn’t his only legal battle. In the Southern District of New York, Guo was convicted of defrauding investors and hit with a staggering $1.3 billion forfeiture order. Despins has accused Guo of sustaining a lavish lifestyle while concealing assets across more than 20 countries, allegedly to frustrate creditors.

Counsel and Case Details

The trustee is represented by Patrick R. Linsey, Douglas S. Skalka and Nancy Bohan Kinsella of Neubert Pepe & Monteith PC, along with Douglass Barron of Paul Hastings LLP.

Wildes & Weinberg PC, meanwhile, is represented in-house by Michael Wildes.