The U.S. Department of Justice has charged Bill Guan, the Chief Financial Officer of The Epoch Times, with his alleged involvement in a $67 million fraud scheme.
Guan, who was arrested on Monday, is accused of leading a transnational operation to launder illicit funds through cryptocurrency. The indictment, detailing the accusations against him, was unsealed on June 3.
Guan allegedly managed the “Make Money Online” team overseas from around 2020 through May 2024. The scheme reportedly involved purchasing crime proceeds at discounted rates using cryptocurrency, then funneling the laundered money into various accounts, including The Epoch Times and related entities.
Scheme Details and Operations
The Department of Justice claims that under Guan’s direction, the team and its associates knowingly purchased proceeds of fraudulent activities, such as unemployment insurance benefits, at discounts of 70 to 80 cents on the dollar. These transactions were conducted via a specific cryptocurrency platform. The fraudulently obtained funds were loaded onto prepaid debit cards, which were then used to purchase cryptocurrency.
The funds were laundered through multiple channels, including Guan’s personal bank accounts, crypto accounts, and the media company’s accounts. The scheme enabled Guan and his team to obscure the origins of the funds, presenting them as legitimate revenue or donations.
The investigation into The Epoch Times began when investigators noticed a 410% increase in the company’s annual revenue, rising from $15 million to $62 million. Guan attributed this sudden influx of funds to donations, a claim that raised suspicions among investigators. The U.S. Attorney’s Office for the Southern District of New York noted that banks had questioned the origins of the funds, to which Guan allegedly responded with false claims about their legitimacy.
Federal prosecutors revealed that Guan is charged with one count of conspiring to commit money laundering, which carries a maximum sentence of 20 years, and two counts of bank fraud, each punishable by up to 30 years in prison. These charges are specific to Guan’s actions and do not implicate The Epoch Times’ news and information-gathering activities.
The Epoch Times’ Response
The Epoch Times, known for its conservative political stance and criticism of the Chinese government, has not been accused of wrongdoing in its journalistic operations. The media outlet, founded in 2000, operates in over 20 languages across numerous countries and was established to counter Chinese Communist Party propaganda.
The company has yet to release a detailed statement regarding the charges against its CFO. The indictment and subsequent charges focus solely on Guan’s alleged financial activities and connection to the media entity’s accounts.
Federal authorities continue examining the case to ensure all responsible parties are held accountable for their actions.
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