NEW YORK (AP) — The former chief financial officer of The Epoch Times, a conservative multinational media company, interrupted jury selection in his money laundering trial on Thursday to plead guilty to a conspiracy charge in a $67 million fraud scheme.
Weidong “Bill” Guan, 63, of Secaucus, New Jersey, filed the lawsuit in federal court in Manhattan, admitting to participating in a scheme that prosecutors described as fraudulently obtaining unemployment benefits and other funds through the bank accounts of the New York-based media company and affiliates.
The charge of conspiracy in connection with illegal financial transactions carries a possible prison sentence of up to 10 years.
Judge Victor Marrero did not immediately set a sentencing date for Guan, who remains free on bail.
In admitting his role, Guan said he knew there was a “high probability” that funds flowing through accounts he managed were “proceeds of crime.”
He said that despite the likelihood that the money was related to fraud, he “accepted the explanations given to him” and “did not look deeper to verify my concerns.”
“That was a huge misjudgment,” Guan told the judge. “It was wrong and I am very sorry for my actions.”
In response to a question from the judge, Guan confirmed that he knew what he did was wrong and illegal.
But when the judge asked him if he was pleading guilty, he replied: “I feel guilty.”
Marrero told him it wasn’t about how he felt, but about whether he was guilty.
“I’m guilty,” Guan replied.
According to court documents, since 2020, members of the company’s Make Money Online team led by Guan used cryptocurrencies to “knowingly acquire tens of millions of dollars in criminal proceeds,” including funds from fraudulently obtained unemployment benefits that were loaded onto prepaid debit cards.
The stolen personal information was then used to open an account as part of the money laundering scheme, prosecutors said. The money was also laundered through other Epoch bank accounts and Guan’s personal bank and cryptocurrency accounts, they said.
Prosecutors said the charges were not related to the media company’s news gathering activities.
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A prosecutor told the judge that a trial would have included testimony from current and former Epoch Times employees, as well as cryptocurrency records and hundreds of emails and text messages, including some in which Guan misled banks about the nature of revenue flowing through various accounts.
According to federal prosecutors, when the money laundering began, the media company’s revenue increased by about 410%, from about $15 million to $62 million. They said Guan lied to banks when they asked about the increase in transactions, saying there was an increase in legitimate donations.
The Epoch Times, which had promised full cooperation with prosecutors, has become politically conservative over the years and has embraced President Donald Trump.
In a statement following Guan’s arrest, the media company said: “The Epoch Times has a guiding principle that places the integrity of its business above all else.”
https://apnews.com/article/epoch-times-cfo-indictment-money-laundering-a015b35aaeae44284f0026dc10395acc
