Epoch Times CFO Charged in $67 Million Money Laundering Scheme

The financial director of the Epoch Times newspaper has been arrested for his alleged involvement in a vast money laundering scheme.

Federal prosecutors say Bill Guan, 61, participated in a global conspiracy to launder at least $67 million (£52 million) in illegal cash for his own benefit and that of the Epoch Times.

According to the indictment, Mr. Guan led the media outlet's “Make Money Online” team, which used cryptocurrency to purchase tens of millions in criminal proceeds.

Mr. Guan has not yet entered a plea. If convicted, he faces more than 30 years in prison.

In a statement released Monday evening, the Epoch Times told the BBC that it “intends and will fully cooperate with any investigation into the allegations against Mr. Guan.”

“Although Mr. Guan is innocent until proven guilty, the company has suspended him until this matter is resolved,” the media outlet said.

He did not answer specific questions about the Make Money Online team referenced by prosecutors.

Mr Guan could not be contacted by the BBC.

In the 12-page indictment, federal prosecutors detailed the alleged scheme, which they say began around 2020.

The plot, according to prosecutors, was simple: Members of the Make Money Online (MMO) team would purchase the proceeds of crime via discounted cryptocurrency and transfer those proceeds to bank accounts held by entities affiliated with the newspaper.

The illegal proceeds would ultimately be reinvested into Epoch Times accounts through “tens of thousands of multi-level transactions,” including through prepaid debit cards and financial accounts opened using stolen credentials.

According to the indictment, for years, this scheme helped enrich the Epoch Times, pumping tens of millions of dollars into the newspaper.

Coinciding with the time Mr. Guan invented the alleged scheme, the outlet's internal accounting showed that its annual revenue had increased by about 410%, from $15 million in 2019 to about $62 million l 'Next year.

When banks asked Mr. Guan where the influx of money came from, he lied, saying the funds came from “donations,” prosecutors said.

Mr. Guan was charged with one count of conspiracy to commit money laundering and two counts of bank fraud.

Prosecutors noted that these charges “do not relate to the news gathering activities of the media company (Epoch Times).”

Founded in 2000, The Epoch Times was originally a small, low-budget newspaper distributed free of charge in New York.

This initiative was started by Chinese Americans affiliated with a religious group called Falun Gong.

In the years since, it has become one of the most powerful conservative news outlets in the United States and a hotbed of conspiracy theories, right-wing disinformation and strong opposition to the Chinese Communist Party.