Weidong "Bill" Guan, the Chief Financial Officer of The Epoch Times, has been charged with orchestrating a complex, years-long scheme to launder at least $67 million in illicit funds. Federal prosecutors announced the charges on Monday, shedding light on a series of fraudulent activities involving cryptocurrency, prepaid debit cards, and stolen personal information.
Guan, 61, was arrested on Sunday morning and appeared before a federal magistrate judge in Manhattan on Monday, where he pleaded not guilty to one count of conspiracy to commit money laundering and two counts of bank fraud. He was released on a $3 million personal recognizance bond, with travel restrictions limited to parts of New York and New Jersey.
According to U.S. Attorney Damian Williams, Guan conspired with others to benefit himself and the media company by laundering millions of dollars in fraudulently obtained unemployment insurance benefits and other criminal proceeds. When banks questioned the origins of the funds, Guan allegedly lied, claiming they were legitimate donations to The Epoch Times.
The Epoch Times, in a statement, has temporarily suspended Guan and expressed its intention to fully cooperate with the investigation. "Although Mr. Guan is innocent until proven guilty beyond a reasonable doubt, the company has suspended him until this matter is resolved," a spokesperson said.
The indictment alleges that from 2020 to 2024, Guan managed The Epoch Times' "Make Money Online" team, which played a central role in the scheme. The team is accused of using a cryptocurrency platform to purchase tens of millions of dollars in crime proceeds at discounted rates, often between 70 to 80 cents on the dollar, in exchange for cryptocurrency. These proceeds, including fraudulently obtained unemployment insurance benefits, were loaded onto tens of thousands of prepaid debit cards.
The fraudulent funds were then transferred into various bank accounts linked to The Epoch Times and related entities, often using stolen personal information to open these accounts. Prosecutors allege that these funds were frequently laundered again through other accounts, including Guan's personal bank and crypto accounts.
The scheme significantly boosted The Epoch Times' reported revenue, which jumped from approximately $15 million in 2019 to about $62 million in 2020. This dramatic increase coincided with the peak period of the alleged money laundering activities.
The Epoch Times, a conservative media outlet headquartered in Manhattan, is known for its critical stance against the Chinese Communist Party and its support for former President Donald Trump. The outlet's affiliation with the Falun Gong, a Chinese religious movement banned in China, has also been widely reported.
Federal prosecutors did not name The Epoch Times in the indictment, referring instead to a "multinational media company headquartered in Manhattan." However, Guan's role as CFO was confirmed by the company's most recent tax return filed in late 2023.
If convicted, Guan faces severe penalties, including up to 20 years in prison for the money laundering charge and up to 30 years for each bank fraud count. These charges do not pertain to The Epoch Times' newsgathering activities, the Department of Justice noted in its press release.
The complex nature of the scheme highlights the intersection of traditional financial fraud and modern cryptocurrency transactions. Guan and his co-conspirators are accused of exploiting the anonymity and decentralized nature of cryptocurrency to mask the origins of their illicit funds. This case underscores the challenges regulators and law enforcement face in tracking and prosecuting financial crimes in the digital age.
Federal authorities have indicated that the investigation is ongoing, and further developments are expected as prosecutors continue to unravel the full extent of the alleged money laundering operation.
