Media company CFO pleads guilty in $67 million scheme that washed fraud proceeds through crypto and prepaid cards
Weidong "Bill" Guan, former chief financial officer of The Epoch Times, admitted directing a scheme that bought crime proceeds loaded onto gift cards and prepaid debit cards at 70 to 80 cents on the dollar, then moved the funds into company accounts as fake donations.
The former chief financial officer of The Epoch Times pleaded guilty on July 9 in Manhattan federal court to one count of conspiracy to engage in transactions involving criminal proceeds. The plea came during jury selection, ending the trial before opening statements. Sentencing has not yet been scheduled.
According to the U.S. Attorney's Office for the Southern District of New York, Weidong "Bill" Guan, 63, conspired from at least 2019 through May 2024 to launder at least approximately $67 million of illegally obtained funds to bank accounts in the names of The Epoch Times and related entities. Guan worked with a Vietnam-based group known as the "Make Money Online" team, using company funds to purchase crime proceeds loaded onto gift cards and prepaid debit cards at discounted rates of approximately 70 to 80 cents on the dollar, then laundering those proceeds back to the company under the guise of fake donations. When banks flagged the transactions as suspicious, prosecutors said, Guan knowingly misled them into believing the transactions were legitimate.
The discount is the tell
Legitimate funds do not sell below face value. A prepaid card loaded with 100 dollars that changes hands for 75 is priced that way because the seller cannot use the money in the open financial system. Prosecutors said much of the underlying money was fraudulently obtained unemployment insurance benefits, and that stolen personal information was used to open bank and cryptocurrency accounts along the way.
The numbers show why the pipeline ran for years. During the period of the scheme, the company's annual revenue grew from roughly 15 million dollars to roughly 62 million dollars, according to the 2024 indictment.
Terms of the plea
The count carries a maximum sentence of ten years in prison. Guan agreed to forfeit at least $67 million and separately to pay restitution up to $67 million. A co-conspirator, Le Van Hung, pleaded guilty on June 29 to conspiracy to commit identity theft for his role in the scheme. The Justice Department noted that the criminal conduct does not relate to the company's newsgathering activities.
For victims of benefit fraud and identity theft, this case documents the far end of the chain: where stolen money, converted to crypto and then to discounted card balances, finally lands as clean-looking revenue. This plea shows the chain can be walked end to end.