Former CFO's guilty plea raises questions about oversight failures in money laundering scheme involving cryptocurrency and stolen identities at conservative media outlet.
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Weidong "Bill" Guan, the 63-year-old former chief financial officer of The Epoch Times, stunned Manhattan federal court on Thursday by pleading guilty to conspiracy charges in a sprawling $67 million money-laundering scheme. The unexpected plea came just as jury selection was beginning at the trial, where Guan had previously faced far more serious charges that could have resulted in more than a decade of imprisonment. Guan, a New Jersey resident, acknowledged his participation in an elaborate conspiracy to launder fraudulently obtained unemployment benefits and other illicit proceeds through The Epoch Times' bank accounts and affiliated entities. The conspiracy charge carries a maximum sentence of 10 years in federal prison, though prosecutors' cooperation agreement may reduce his ultimate punishment at sentencing.
During the preceding before Judge Victor Marrero, Guan expressed remorse for his actions, telling the court that he knew there existed "a high probability" that money flowing through accounts under his supervision were derived from criminal activity. Despite recognizing this risk, Guan admitted he "chose to accept" explanations provided to him and deliberately avoided deeper investigation into his concerns.
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"This was a tremendous lapse in judgment," Guan told the judge. "It was wrong and I am very sorry for my actions." |
According to court documents, members of The Epoch Times' "Make Money Online" team, which Guan managed, orchestrated the scheme since 2020. The operation involved using cryptocurrency to purchase tens of millions of dollars in crime proceeds, particularly funds from fraudulently obtained unemployment benefits that were loaded onto prepaid debit cards. Prosecutors revealed that stolen personal information was exploited to open accounts as part of the laundering pipeline.
The illicit funds were then cycled through various bank accounts held by The Epoch Times, Guan's personal banking accounts, and cryptocurrency wallets, creating multiple layers of obfuscation. Guan allegedly misled financial institutions about the nature of incoming transactions in emails and text messages, falsely attributing revenue increases to legitimate donations. The impact on The Epoch Times' finances was staggering. Federal prosecutors documented that the media company's annual revenues surged approximately 410 percent during the laundering period, climbing from roughly $15 million to $62 million. This explosive growth in cash flow coincided directly with the initiation of the illegal money movement.
Business Honor is of the view that Weidong Guan's guilty plea represents a significant governance failure in The Epoch Times' financial oversight and compliance infrastructure management.
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