TLDR
- Epoch Times CFO Bill Guan was arrested and charged with participating in a scheme to launder $67 million in illicit funds to benefit himself and the company.
- The scheme involved using cryptocurrency to purchase crime proceeds, including fraudulently obtained unemployment benefits, at a discount and funnel them through various bank accounts.
- Stolen personal information was used to open accounts as part of the alleged laundering scheme.
- The Epoch Times’ reported annual revenue increased around 410%, from $15 million to $62 million, around the time the alleged money laundering began.
Bill Guan, the 61-year-old Chief Financial Officer of The Epoch Times, a multinational media company, was arrested on Sunday and charged on Monday for his alleged role in a transnational scheme to launder at least $67 million in illicit funds. Federal prosecutors unsealed a 12-page indictment accusing Guan of conspiring to commit money laundering and bank fraud to benefit himself and The Epoch Times.
According to the indictment, from around 2020 through May 2024, Guan managed an overseas “Make Money Online” team for The Epoch Times.
Under his management, team members and other scheme participants allegedly used cryptocurrency to knowingly purchase tens of millions of dollars worth of crime proceeds, including fraudulently obtained unemployment insurance benefits loaded onto prepaid debit cards, at discounted rates of 70 to 80 cents per dollar.
The illicit funds were then allegedly laundered through cryptocurrency platforms and funneled into bank accounts held by The Epoch Times and affiliated entities.
Stolen personal identification information was used to open various financial accounts, including prepaid debit card accounts, cryptocurrency accounts, and bank accounts, to facilitate the laundering process.
The money was further laundered through other bank accounts associated with The Epoch Times, as well as Guan’s personal bank and cryptocurrency accounts.
The Epoch Times’ reported annual revenue jumped approximately 410%, from around $15 million to $62 million, around the same time the alleged money laundering scheme began.
When banks questioned Guan about the significant increase in transactions, he allegedly lied repeatedly, falsely claiming the funds came from legitimate donations to the media company.
Guan pleaded not guilty to the charges on Monday.
If convicted, he faces a maximum sentence of 20 years in prison for the money laundering charge and 30 years for each bank fraud charge.
The Epoch Times stated it intends to fully cooperate with the investigation and has suspended Guan until the matter is resolved, noting he is innocent until proven guilty.
Federal authorities emphasized that the charges against Guan are not related to The Epoch Times’ newsgathering activities.
The Epoch Times, headquartered in New York City, is known for its conservative stance, criticism of the Chinese Communist Party, and support of former U.S. President Donald Trump. The media company is affiliated with the Falun Gong, a religious movement banned in China.
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