Former Epoch Times executive pleads guilty to multimillion-dollar fraud scheme that funded newspaper 

MANHATTAN (CN) — A former finance executive at The Epoch Times pleaded guilty Thursday to running a $67 million fraud scheme that funneled illicit proceeds to the right-wing newspaper.

Weidong “Bill” Guan, 63, pleaded guilty to one count of conspiracy to engage in transactions involving criminal proceeds. The plea came on the third day of jury selection for Guan’s federal trial as prospective jurors waited in a neighboring courtroom.

The jurors ultimately were not needed. Guan admitted that, as The Epoch Times’ chief financial officer, he began working with a Vietnam-based group known as the “Make Money Online” team in 2019.

As he explained to U.S. District Judge Victor Marrero, the goal of the program was to “increase the amount of donations” made to The Epoch Times — a controversial newspaper associated with the Falun Gong new religious movement, which has tied itself to far-right politics and conspiracy theories in Europe and the United States.

Prosecutors say the scheme worked. During the fraud, The Epoch Times’ annual revenue grew from about $15 million to roughly $62 million, according to Guan’s 2024 indictment.

Somberly delivering his allocution from the defense table Thursday, Guan explained the details of the project. He told the judge he directed the “Make Money Online” team to use cryptocurrency to purchase prepaid debit cards at a discount before transferring the funds on those cards to The Epoch Times.

Guan admitted that he saw several “red flags” that he ultimately overlooked. He said he “became aware” that some of the debit cards had been stolen or were the proceeds of fraud.

Prosecutors said much of the money came from fraudulently obtained unemployment insurance benefits and that Guan and his team used stolen personal information to open bank and cryptocurrency accounts before transferring the criminal proceeds to The Epoch Times.

“I am guilty,” Guan told the judge through a translator, calling the ordeal “a tremendous lapse in judgment on my part.”

Had the case gone to trial, prosecutors said they planned to present bank and cryptocurrency records showing Guan laundered tens of millions of dollars to the newspaper. They also said emails showed Guan misled several banks about the source of the funds and ignored repeated warnings about the legality of the operation.

Prosecutors have said the charges were not related to the paper’s newsgathering activities.

The Epoch Times distanced itself from Guan in a statement Thursday.

“Today, former Epoch Times CFO Bill Guan reached a plea agreement with prosecutors following his indictment in June 2024,” the publication stated. “The Epoch Times was never a party to this litigation. Under the leadership of CEO Samuel Zhou and CFO William Cheung, The Epoch Times remains focused on producing award-winning and independent journalism to serve our readers.”

Guan’s defense lawyer, Guy Petrillo, declined to comment.

Guan was originally charged with conspiracy to commit money laundering, which carries a maximum sentence of 20 years in prison, and two counts of bank fraud, each punishable by up to 30 years in prison.

The conspiracy charge he pleaded guilty to came in a superseding information filed during plea negotiations and carries a maximum sentence of 10 years.

Guan, who lives in Secaucus, New Jersey, and is not a U.S. citizen, could face deportation. Marrero, a Bill Clinton appointee to the Southern District of New York, scheduled sentencing for about 90 days from now.

Guan’s co-defendant, Le Van Hung, pleaded guilty last month to one count of conspiracy to commit identity theft. He worked with Guan on the “Make Money Online” team.

Founded in 2000 by Falun Gong affiliates, The Epoch Times is a vocal critic of the Chinese Communist Party and has supported President Donald Trump and other conservative politicians across North America and Europe. The newspaper suspended Guan after his 2024 arrest.

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