Michael Gu: Developer on the run believed to be hiding in China

A developer missing for two years who fled when his company collapsed owing $350m has reportedly been tracked overseas after initially fleeing to the United States.

Fugitive developer Michael Gu is believed to be hiding out in China with millions in investor funds and has no intention of returning to Australia.

It can be revealed the man dubbed “the new Christopher Skase” has been tracked by the NSW Police’s Financial Crimes Squad back to his home country, two years after fleeing Australia.

Gu has been on the run since 2020 when he flew to America as his company, iProsperity, which touted the Hudson Hotel in New York as an asset, went bust.

Michael Gu fled as his company collapsed with debts of $350m.

The Sunday Telegraph understands the casino high roller with a penchant for fast cars and private jets is believed to be hiding with millions of dollars in China and has no intention of returning down under to face creditors.

It is also understood efforts will be made to flag Gu’s name on incoming passenger lists so that he could be arrested if he steps foot in Sydney

“It wasn’t a sophisticated operation,” one person familiar with the investigation said.

“He found a hole in the market and exploited it.

A one of a kind 2018 Rolls Royce Wraith, owned by Mr Gu.

“There definitely was an intent. He never had a vision that it would collapse, he thought he could negotiate himself out.

“It is astonishing that someone could do something like this.”

The last trace creditors and police had of Gu was in Los Angeles before their trail went cold.

He was being chased by a swarm of overseas investors and large corporations who fell under Gu’s spell before he used their money to gamble at the Crown and buy property for himself.

Gu’s company went bust after it was revealed to be a huge Ponzi scheme that scammed investors out $350 million.

An iProsperity site which remains unbuilt to this day. Picture: Damian Shaw

It would have seen the last freestanding homes in Rhodes demolished to a 30-storey tower. Picture: Damian Shaw

Liquidators sold his Rolls Royce, Lamborghini and beachfront Balmoral home to claw back the money as his bank accounts contained less than $60,000 at the time he vanished.

Among his long list of spending habits were reports he was one of the biggest high-roller gamblers on the books at Crown casino.

When word got out of his disappearance the plush mansion he and his wife called home was defaced with graffiti in mandarin, which reportedly read: “Pay money back”

Gu billed himself as a former Western Sydney mobile phone salesman who made his way into the most elite circles in Sydney’s social scene.

From there, iProsperity proposed to build some of the biggest projects in Australia and was behind some of the most audacious property plays, including the purchase of 28 hotels.

But investors were left reeling from the company’s demise after its liquidator uncovered their missing millions.

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