NEW YORK — Weidong “Bill” Guan, the former chief financial officer of The Epoch Times, a conservative multinational media company, interrupted jury selection at his money laundering trial on Thursday to plead guilty to a conspiracy charge. The plea in Manhattan federal court admitted his participation in a $67 million fraud scheme that involved laundering funds through the media company’s bank accounts and related entities.
Guan, 63, of Secaucus, New Jersey, faces a potential prison sentence of up to 10 years for the conspiracy charge related to illegal financial transactions. Judge Victor Marrero has not yet set a sentencing date, and Guan remains free on bail.
Admission of Guilt and Intent
During his admission, Guan acknowledged his awareness of the illicit nature of the funds he oversaw. He stated that he knew there was “a high probability” that money passing through accounts under his management “were the proceeds of criminality.” Despite this knowledge, he admitted he “chose to accept” explanations provided to him and “did not look deeper to verify my concerns.”
Guan described his actions as “a tremendous lapse in judgment,” adding, “It was wrong and I am very sorry for my actions.” When directly questioned by the judge, Guan confirmed his understanding that his conduct was both wrong and illegal. Initially responding, “I feel like I’m guilty,” he clarified to the judge, “I’m guilty,” after being prompted that the court required a definitive admission of guilt.
Mechanics of the $67 Million Scheme
According to court documents, the money laundering operation, which began in 2020, involved members of the company’s “Make Money Online” team, directly managed by Guan. This team utilized cryptocurrency to “knowingly purchase tens of millions of dollars in crime proceeds.” These proceeds included funds derived from fraudulently obtained unemployment benefits, which were loaded onto prepaid debit cards.
Prosecutors detailed that stolen personal information was then employed to open accounts as part of the broader money laundering scheme. The illicit funds were subsequently laundered further through various bank accounts held by The Epoch Times itself, as well as Guan’s personal bank and cryptocurrency accounts.
Financial Impact and Deceptive Practices
Federal prosecutors highlighted a significant financial impact on The Epoch Times during the period the money laundering was active. The media company’s revenues experienced an approximate 410% surge, escalating from roughly $15 million to $62 million. This dramatic increase coincided with the commencement of the illegal financial activities.
Guan was also accused of actively misleading financial institutions. Prosecutors stated that he “lied to banks when they asked about the increase in transactions and said there was an increase in legitimate donations.” A prosecutor indicated that a trial would have presented extensive evidence, including testimony from current and former Epoch Times employees, cryptocurrency records, and hundreds of emails and text messages, some of which directly implicated Guan in misrepresenting the nature of the income flowing through these accounts.
The Epoch Times’ Stance and Broader Context
The Epoch Times, identified as a conservative multinational media company that has embraced former President Donald Trump, has publicly committed to full cooperation with prosecutors following Guan’s arrest. In a statement issued at the time, the media outlet asserted, “The Epoch Times has a guiding principle that elevates integrity in its dealings above everything else.” Prosecutors have explicitly stated that the charges against Guan are not related to the media company’s newsgathering activities.
Guan’s guilty plea marks a significant development in a case that underscores the vulnerabilities within corporate financial oversight and the complex methods employed in multinational money laundering schemes, particularly those leveraging digital currencies and exploiting public benefit programs. The forthcoming sentencing will determine the full legal consequences for the former CFO, bringing a measure of closure to this intricate financial fraud.
