Epoch Times CFO Arrested Money Laundering, Bank Fraud Charges

Post by: Elena Malik

Photo : Business insider

The arrest and indictment of Weidong Guan, a top executive at The Epoch Times, a right-wing media outlet, has sent shockwaves through the journalistic and political spheres. Guan faces serious charges of money laundering, totaling at least $67 million, along with two counts of bank fraud. The allegations stem from a complex scheme that prosecutors claim Guan orchestrated over a four-year period.

According to reports in The New York Times, Guan allegedly deceived financial institutions regarding the source of the funds, with some of the money traced back to fraudulent unemployment benefits. The Justice Department asserts that this illicit influx of funds inflated The Epoch Times' revenue by a staggering 400% within just one year.

Guan, serving as the Chief Financial Officer of The Epoch Times, was apprehended on Monday and has pleaded not guilty to the charges. If convicted, he could face up to 20 years in prison for money laundering and an additional 30 years for each count of bank fraud.

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The Epoch Times, associated with the Falun Gong spiritual movement in China, has transitioned from solely criticizing the Chinese Communist Party to becoming a vocal supporter of Donald Trump and other right-wing figures. Guan's alleged scheme involved purchasing prepaid debit cards at a discount using cryptocurrency, then depositing the funds into personal and company accounts.

Prosecutors describe the operation as a "sprawling, translational scheme" that capitalized on digital currency and deceptive financial maneuvers. Damian Williams, the US attorney for the Southern District of New York, emphasized the government's commitment to combatting fraud and protecting the integrity of the financial system.

Guan, residing in Secaucus, New Jersey, faces a hefty bail package of $3 million, including a $250,000 cash deposit, and will be confined to home detention pending trial. Meanwhile, The Epoch Times has pledged full cooperation with the investigation into Guan's alleged misconduct.

Founded in 2000 by current CEO John Tang, The Epoch Times began as a modest newspaper in Georgia but has since expanded its operations to include digital media and broadcasting under the New Tang Dynasty Television (NTD) brand. However, the outlet has faced criticism for disseminating right-wing conspiracy theories and was banned from advertising on Facebook in 2019 due to violations of transparency requirements.

The alleged money-laundering scheme, which commenced in 2020, coincided with a meteoric rise in The Epoch Times' revenue, reaching $121 million the following year. Guan attributed this growth to increased paid subscriptions and donations, but prosecutors allege that the funds were unlawfully obtained through the scheme.

Despite Guan's claims of donations from supporters, investigators assert that the bulk of the money came from a criminal enterprise known as Make Money Online. Guan allegedly deposited millions into personal accounts without reporting the income, further complicating the legal quagmire surrounding The Epoch Times and its CFO.

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