Epoch Times CFO Arrested for Leading $67 Million Money Laundering Scheme

The chief financial officer of the conservative global news outlet The Epoch Times has been arrested and charged with orchestrating a yearslong scheme to launder at least $67 million in illicit funds, federal prosecutors announced Monday.

The “sprawling” scheme involved cryptocurrency, tens of thousands of prepaid debit cards, fraudulently obtained unemployment insurance benefits, and stolen personal information, prosecutors alleged. This elaborate operation fueled a massive increase in The Epoch Times’ reported annual revenue, according to the allegations.

Weidong “Bill” Guan, 61, is charged in U.S. District Court in lower Manhattan with one count of conspiracy to commit money laundering and two counts of bank fraud.

Arrest and Court Proceedings

Guan was arrested Sunday morning and pleaded not guilty on Monday afternoon before a federal magistrate judge in Manhattan. He was released on a $3 million personal recognizance bond, with travel restrictions limited to parts of New York and New Jersey, among other conditions.

U.S. Attorney Damian Williams stated that Guan “conspired with others to benefit himself, the media company, and its affiliates by laundering tens of millions of dollars in fraudulently obtained unemployment insurance benefits and other crime proceeds.”

“When banks raised questions about the funds, Guan allegedly lied repeatedly and falsely claimed that the funds came from legitimate donations to the media company,” Williams added.

Scheme Details

While The Epoch Times is not mentioned by name in the indictment, Guan is listed as its CFO on the nonprofit media company’s most recent tax return, filed in late 2023. Prosecutors said the money laundering scheme benefited “a multinational media company headquartered in Manhattan, New York.” The Epoch Times is headquartered on West 28th Street in Manhattan.

The indictment alleges that Guan and his co-conspirators caused the company’s revenue to jump from “approximately $15 million to approximately $62 million” between 2019 and 2020. According to The Epoch Times’ IRS nonprofit tax returns, the company reported program revenue of $15.5 million in 2019 and tax-exempt revenue of $62.7 million in 2020.

Guan's Role and Operations

Guan, a resident of Secaucus, New Jersey, managed The Epoch Times’ “Make Money Online team,” which carried out the scheme to buy “crime proceeds” and transfer them to bank accounts linked to the media outlet. From 2020 to 2024, the team allegedly used a crypto platform to buy tens of millions of dollars in crime proceeds at discounted rates, of 70 to 80 cents on the dollar, in exchange for cryptocurrency.

The crime proceeds, derived from sources including “fraudulently obtained unemployment insurance benefits,” were loaded onto tens of thousands of prepaid debit cards. Participants then used stolen personal information to open various types of accounts and transfer the proceeds into bank accounts linked with The Epoch Times and related entities. These funds were often laundered again through other accounts, including Guan’s own personal bank and crypto accounts.

Concealment and Legal Implications

To conceal the illegal nature of the proceeds, Guan and his co-conspirators allegedly lied to banks and other entities about their sources. The bank fraud counts each carry a maximum sentence of 30 years in prison, while the conspiracy charge holds a 20-year maximum prison sentence.

An attorney for Guan could not immediately be reached for comment. Guan has been appointed a public defender, according to a case docket. A spokesperson for the Manhattan U.S. Attorney’s Office declined to provide additional comments on the indictment, which was filed in late May and unsealed Monday.

The charges against Guan “do not relate to the Media Company’s newsgathering activities,” the Department of Justice noted in a press release.

Background on The Epoch Times

NBC News and other outlets have reported on The Epoch Times’ affiliation with the Chinese religious group Falun Gong, which in recent years has supported former President Donald Trump as an ally in its opposition to China’s ruling Communist Party.

The case against Guan highlights the intersection of financial crime and media operations, raising questions about the broader implications for The Epoch Times and its affiliates. As the legal proceedings continue, the focus will be on uncovering the full extent of the scheme and its impact on the organization’s financial practices.

Reaction from The Epoch Times

The Epoch Times did not immediately respond to requests for comment. The arrest and charges against Guan cast a shadow over the organization, which has been a prominent voice in conservative media. As the case develops, scrutiny will likely increase on how such significant financial discrepancies were allowed to occur and whether any additional figures within the organization were aware of or involved in the scheme.

Broader Implications

This case not only affects The Epoch Times but also serves as a reminder of the potential for financial malfeasance within nonprofit organizations. The intersection of media influence and financial crime poses unique challenges, particularly for organizations with significant public followings and ideological leanings. As more details emerge, this case could prompt calls for greater oversight and transparency in the financial operations of media and nonprofit entities.