NEW YORK — Weidong "Bill" Guan, former chief financial officer of The Epoch Times, pleaded guilty to a conspiracy charge in a $67 million fraud scheme in Manhattan federal court. Guan admitted his involvement in a plan to launder fraudulently obtained unemployment benefits and other funds through bank accounts associated with The Epoch Times and its related entities.

Guan, 63, of Secaucus, New Jersey, confirmed to the judge that he was aware his actions were wrong and illegal. When asked by Judge Victor Marrero if he was guilty, Guan initially responded, "I feel like I'm guilty." After the judge clarified that the question was about guilt, not feeling, Guan stated, "I'm guilty."

Guan acknowledged that he knew there was "a high probability" that money moving through accounts he supervised "were the proceeds of criminality." He also indicated that he "chose to accept" explanations provided to him and "did not look deeper to verify my concerns." Guan told the judge, "This was a tremendous lapse in judgment," and added, "It was wrong and I am very sorry for my actions."

Court documents reveal that members of The Epoch Times' "Make Money Online" team used cryptocurrency to knowingly buy tens of millions of dollars in crime proceeds since 2020. The "Make Money Online" team was managed by Guan. The laundered funds included money from fraudulently obtained unemployment benefits, which were loaded onto prepaid debit cards, and involved using stolen personal information to open accounts.

The money was then laundered through other bank accounts held by The Epoch Times, as well as Guan's personal bank and cryptocurrency accounts. Federal prosecutors stated that The Epoch Times' revenues increased by approximately 410% when the money laundering began, rising from about $15 million to $62 million. Prosecutors also said Guan misrepresented the nature of the income to banks, claiming the increase was due to legitimate donations.

The conspiracy charge related to illegal financial transactions carries a potential prison sentence of up to 10 years. Judge Marrero has not yet set a sentencing date for Guan, who remains free on bail. Prosecutors clarified that the charges are not connected to The Epoch Times' newsgathering activities.

Why It Matters

This plea resolves a federal investigation into a financial scheme that involved the former chief financial officer of an international media organization. The case involves the use of cryptocurrency and various financial accounts to launder funds obtained through fraudulent means, including unemployment benefits. The increase in The Epoch Times' reported revenue during the period of the scheme indicates the scale of the financial activity involved.