Epoch Times CFO charged with leading $67 million money laundering scheme

On Monday, June 3, the chief financial officer of The Epoch Times, a conservative global news outlet, was arrested and charged with leading a yearslong scheme to launder at least $67 million in illicit funds. Weidong "Bill" Guan, 61, is accused of a money laundering conspiracy and bank fraud in the U.S. District Court in lower Manhattan.

Guan was arrested on 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 restricted travel to parts of New York and New Jersey, among other limitations.

According to U.S. Attorney Damian Williams, Guan allegedly 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 questioned by banks about the funds, Guan allegedly lied repeatedly, claiming the funds came from legitimate donations to the media company.

Impact on Revenue

The alleged money laundering scheme is said to have caused a significant increase in The Epoch Times' reported annual revenue. The company's revenue reportedly surged from approximately $15 million to approximately $62 million between 2019 and 2020.

Guan, who managed the Epoch Times' "Make Money Online team," allegedly utilized a crypto platform to buy tens of millions of dollars in crime proceeds at discounted rates, in exchange for cryptocurrency. These crime proceeds, including fraudulently obtained unemployment insurance benefits, were then loaded onto tens of thousands of prepaid debit cards. The participants in the scheme allegedly used stolen personally identifiable information to open various types of accounts and transfer the proceeds into bank accounts linked with the media outlet and related entities.

Legal Proceedings and Charges

Guan currently faces one count of conspiracy to commit money laundering and two counts of bank fraud, each carrying a maximum prison sentence of 20 to 30 years. It's important to note that these charges do not relate to The Epoch Times' newsgathering activities.

A spokesperson for the Manhattan U.S. Attorney's Office declined to provide any additional comment on the indictment against Guan, which was filed in late May and unsealed Monday. An attorney for Guan could not immediately be reached, but a case docket showed late Monday that Guan had been appointed a public defender.

Affiliation and Exclusives

The Epoch Times is not mentioned by name in the indictment, but Guan is listed as Epoch Times' chief financial officer on the nonprofit media company's most recent tax return, filed in late 2023. The Epoch Times did not immediately respond to CNBC's request for comment.

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 the country's ruling Chinese Communist Party.