How a pro-Trump media outlet allegedly funneled tens of millions of dollars into an illicit money laundering scheme

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new York
CNN
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One of Donald Trump's biggest media supporters is under serious legal threat.

In a stunning indictment released this week, the Justice Department accused The Epoch Times of “benefiting” from a $67 million multinational money laundering scheme masterminded by its chief financial officer, Weidong Guan.

Guan, according to the indictment, led the conspiratorial right-wing media outlet's efforts to “knowingly purchase tens of millions of dollars in proceeds of crime” and then transfer the money to bank accounts belonging to the Epoch Times. Guan and his unnamed alleged co-conspirators within the company moved the money through “tens of thousands of multi-level transactions” that leveraged stolen identities and prepaid debit cards, the Justice Department said .

This sophisticated scheme increased the revenue flowing into the Epoch Times' coffers, the Justice Department said. In one year, the Trump-backed store's revenue soared 410%, from $15 million to about $62 million, the Justice Department added.

Although Epoch Times receives little media attention compared to other pro-Trump outlets, such as Fox News, its reach and support for the disgraced former president and his MAGA movement cannot be overstated. The New York Times called him “one of the most powerful digital publishers in the country” and The Atlantic bluntly called him a “pro-Trump propaganda machine.”

For years, this fledgling non-profit publication was just a niche print newspaper promoting Falun Gong, a religious movement banned in China. But soon after the 2016 election, it underwent a significant digital transformation, fueled by massive traffic from Facebook. The news outlet also purchased millions of dollars in ads on the Mark Zuckerberg-owned platform, propelling the Epoch Times from being distributed on city street corners to the news feeds of millions of Americans by coast to coast.

The outlet has blanketed Facebook with algorithmically supercharged pro-Trump and conspiratorial content, often sending its stories viral and climbing to the top of publication rankings, outperforming more established traditional news operations. Ultimately, Facebook banned the outlet from buying ads in 2019 after NBC News reported on its “efforts to conceal its connection to some $2 million worth of ads promoting (Trump) and conspiracy theories about his political enemies.”

On its website, the Epoch Times claims to be “founded on ethical journalism” and to employ journalists “guided by the highest code of conduct and ethics in their reporting” – a narrative punctuated by the indictment of the Ministry of Justice.

In a short statement, which was notably sent to my inbox by an anonymous spokesperson via a generic “media inquiries” email address, the Epoch Times said it would cooperate with federal authorities. The company added that Guan was “innocent until proven guilty,” but that it had “suspended him until this matter is resolved.”

Suffice to say that this statement does not answer much. On the one hand, the Justice Department's indictment said that an entire Epoch Times “Earn Money Online” team… not just Guan – was involved in the alleged plot. And it strongly suggested that the organization's senior leadership should have been aware of this wrongdoing, given that a number of people and institutions had contacted The Epoch Times about this suspicious activity.

But when CNN requested additional comment Tuesday, Epoch Times executives chose to remain tight-lipped. John Tang, the general manager, and Jasper Fakkert, the editor, did not respond to multiple emails seeking background information.

Have the media's assets been frozen as part of the investigation? The indictment says an entire Epoch Times group participated in the alleged money laundering scheme. Were they also suspended? Notably, Tang and Fakkert refused to answer questions about whether they were aware of the alleged scheme. But if not, are they conducting their own investigation into the matter? They won't say it.

It's also unclear how companies that do business with The Epoch Times will react. Outfront Media, which sells billboard space nationwide, did not respond to inquiries about whether it would continue its relationship with the struggling media outlet. And PayPal, which facilitates online donations to the organization, declined to comment.

When asked Tuesday whether new charges could be filed in the case given the sprawling nature of the alleged scheme, a Justice Department spokesperson declined to comment. But we wonder if other leaders of the organization… or the association itself – could soon face legal problems.