Conservative Global News Media Treasurer The Epoch Times has been arrested and charged with leading a years-long scheme to launder at least $67 million in illicit funds, federal prosecutor said on Monday.
Prosecutors say the “vast” scheme involved cryptocurrency, tens of thousands of prepaid debit cards, fraudulently obtained unemployment insurance benefits and stolen personal information, driving a significant increase in annual revenue reported by The Epoch Times .
Weidong “Bill” Guan, 61, was charged in U.S. District Court in lower Manhattan with one count of conspiracy to commit money laundering and two counts of bank fraud.
Kwan was arrested Sunday morning and pleaded not guilty Monday afternoon before a federal magistrate judge in Manhattan, according to a court notice. He was released on a $3 million personal recognizance bond, limiting his travel to parts of New York and New Jersey, among other restrictions.
U.S. Attorney Damian Williams said in a statement that Kwan “conspired with others to fraudulently obtain tens of millions of dollars in unemployment insurance benefits and other criminal proceeds for himself, media companies and their affiliates.” Seek profit.
“When banks raised questions about the funds, the prosecutor allegedly lied repeatedly and falsely claimed that the funds came from legitimate donations to media companies,” Williams said.
The Epoch Times was not named in the indictment. But Guan is listed as chief financial officer on The Epoch Times, a nonprofit media company. most recent tax returndue in late 2023.
Prosecutors said the money laundering scheme benefited “a multinational media company headquartered in Manhattan, New York.” The Epoch Times is headquartered on West 28th Street in Manhattan.
Prosecutors said the scheme by Guan and his co-conspirators caused the company’s revenue to jump from “approximately $15 million to approximately $62 million” between 2019 and 2020.
According to the IRS nonprofit tax returns disclosed by The Epoch Times, the company’s 2019 report Projected revenue of $15.5 million. The following year, The Epoch Times reported Tax-free income was $62.7 million.
The Epoch Times did not immediately respond to CNBC’s request for comment.
According to the indictment, Guan, a resident of Secaucus, N.J., managed the Epoch Times’ “online money-making team,” which purchased “proceeds of crime” and transferred them to banks affiliated with the media organization. Account plan.
From 2020 to 2024, the team allegedly used crypto platforms to purchase tens of millions of dollars in criminal proceeds at discounts of 70 to 80 cents on the dollar in exchange for cryptocurrency. Prosecutors said the proceeds of crime included “fraudulently obtained unemployment insurance benefits” that were deposited onto tens of thousands of prepaid debit cards.
Participants allegedly purchased the proceeds of crime, opened various types of accounts using stolen personally identifiable information, and transferred the proceeds to bank accounts associated with media organizations and related entities.
They often laundered the money again through other accounts, including their own personal bank and crypto accounts, according to prosecutors.
To hide the illegal nature of the proceeds, Kwan and his co-conspirators allegedly misrepresented their origin to banks and other entities.
Kwan’s attorney could not immediately be reached, but Monday night’s docket showed Kwan had been appointed a public defender.
A spokesman for the U.S. Attorney’s Office in Manhattan declined to provide any additional comment on Kwan’s indictment, which was filed in late May and unsealed Monday.
The bank fraud charge carries a maximum penalty of 30 years in prison, while the conspiracy charge carries a maximum penalty of 20 years in prison. The Justice Department noted in a press release that the charges against Kwan “are not related to the media company’s newsgathering activities.”
NBC News and other media outlets have Reporting Epoch Times Affiliations In recent years, Falun Gong has served as an ally in support of former President Donald Trump and against China’s ruling Communist Party.
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