Former Epoch Times CFO Pleads Guilty to Federal Money Laundering Scheme Involving Tens of Millions of Dollars

A former chief financial officer of the international media organization Epoch Times is facing a possible sentence of up to ten years in federal prison along with a financial forfeiture totaling approximately 67 million dollars after pleading guilty to federal criminal charges. The executive acknowledged directing an extensive financial operation that concealed the origins of tens of millions of dollars in illegally obtained proceeds. According to prosecutors, the sophisticated international scheme transferred cash generated through public benefits fraud into company-controlled accounts over several years. Investigators alleged that the operation manipulated banking systems to significantly inflate the company's reported revenues while disguising the true source of the funds. The prosecution highlights the importance of effective institutional oversight and illustrates the significant risks created when senior corporate officials manipulate internal financial systems.

Federal prosecutors identified the defendant as Weidong Guan, a 63-year-old resident of Secaucus, New Jersey, who served as the chief financial officer of Epoch Times, a globally recognized publishing organization. From 2019 until May 2024, Guan supervised an internal department known as the Make Money Online team. Although this unit operated within the company's organizational structure, prosecutors contend that it primarily functioned as a mechanism for processing funds whose origins could not be legitimately verified. The U.S. Attorney's Office for the Southern District of New York alleged that the group systematically acquired criminal proceeds by purchasing them at discounted rates ranging from 70 to 80 cents on the dollar. Much of the money originated from fraudulent activities involving unemployment insurance benefits, particularly schemes that proliferated during the worldwide economic shutdowns. Prosecutors stated that the conspirators initially used cryptocurrency to purchase these illicit proceeds, creating an additional layer of separation between the original criminal conduct and the eventual cash deposits.

Authorities further alleged that the operation dramatically altered the financial appearance of the media company over several years. Internal financial records showed that the organization's reported revenue surged from roughly 15 million dollars to more than 62 million dollars in just one year. While investigators acknowledged that businesses may experience legitimate growth for various reasons, they maintained that a substantial share of the reported increase resulted from the systematic integration of criminal proceeds into company bank accounts. Prosecutors stated that Guan personally received approximately 16.7 million dollars through 85 separate transfers into accounts under his own control. They alleged that the financial infrastructure blended these illicit proceeds into the company's broader banking operations, making it difficult for outside auditors, regulators, and financial institutions to identify the original sources of the funds.

According to court filings, the laundering operation depended upon a sophisticated financial network that combined cryptocurrency transactions with traditional banking systems. Members of the Make Money Online team allegedly acquired tens of thousands of prepaid debit cards and gift cards through online marketplaces. These cards had already been loaded with funds stolen through various fraudulent schemes. To facilitate the large volume of transactions, prosecutors said the participants relied on stolen personal identifying information belonging to unsuspecting victims. The stolen identities enabled the group to establish numerous bank accounts, cryptocurrency exchange accounts, and prepaid card portals while avoiding routine fraud detection systems. Once the prepaid cards were processed, the balances were converted into cryptocurrency, allowing the funds to move rapidly through digital financial networks and across international borders.

Investigators alleged that the cryptocurrency was transferred through multiple intermediary digital wallets before being converted back into traditional fiat currency. The proceeds were then deposited into bank accounts associated with Epoch Times and several of its affiliated entities. Prosecutors said that portions of the laundered money were subsequently recycled back into the cryptocurrency ecosystem to purchase additional prepaid cards containing illicit funds, creating a continuous laundering cycle that repeatedly washed criminal proceeds through the same financial framework. Authorities also identified Le Van Hung as a significant participant in the conspiracy. Prosecutors alleged that Hung coordinated identity theft activities that enabled the creation of numerous fraudulent financial accounts. He entered a separate guilty plea to federal charges in June 2026. Investigators noted that the operation's reliance on thousands of stolen identities and numerous small-value prepaid card transactions complicated detection efforts because conventional anti-money laundering systems are generally designed to identify larger, more centralized financial transfers rather than high-volume retail transaction activity.

As the flow of money increased, several commercial banks and cryptocurrency service providers reportedly identified unusual transaction patterns involving the company's accounts. Compliance departments at these institutions initiated formal reviews and requested documentation explaining the sudden influx of millions of dollars. Prosecutors alleged that Guan repeatedly responded with false explanations, claiming the incoming funds represented voluntary online donations from supporters around the world. According to investigators, those representations remained consistent even though internal communications allegedly demonstrated that the money was generated through the automated processing activities of the Make Money Online team. Prosecutors further alleged that Guan prepared and submitted a formal letter to a congressional office in 2022 that falsely asserted subscriber donations represented only a minimal portion of the company's overall revenue.

The prosecution contends that the stark contrast between the company's internal financial operations and the explanations provided to regulators and financial institutions exposed significant failures in corporate governance and internal oversight. Investigators argued that when senior executives themselves orchestrate financial misconduct, standard internal controls and audit procedures can be rendered ineffective or deliberately circumvented. The case also underscores the need for financial institutions to examine transactional data independently rather than relying solely on explanations supplied by corporate officers, particularly when organizations experience extraordinary revenue growth without an identifiable commercial basis. Prosecutors maintained that the inability to reconcile public statements with actual financial activity enabled the alleged laundering operation to continue for nearly five years before law enforcement ultimately intervened. According to investigators, the integration of proceeds derived from public benefits fraud into the financial operations of a legitimate media organization ultimately created substantial legal, reputational, and systemic risks for both the company and the financial institutions that maintained banking relationships with it.

By fLEXI tEAM