The Epoch Times newspaper CFO Weidong Guan has been charged with a multinational $67 million money laundering scheme by the US Department of Justice.
Editor’s Note:A version of this article first appeared in the “Reliable Sources” newsletter.Sign up for the daily digest chronicling the evolving media landscape here.
New York CNN —
One ofDonald Trump’sbiggest media boosters is in serious legal jeopardy.
In anastonishing indictmentmade public this week, theDepartment of JusticeaccusedThe Epoch Timesof having “benefited” from a multinational $67 million money laundering scheme staged by its chief financial officer,Weidong Guan.
Guan, according to the indictment, led efforts at the conspiratorial right-wing media outlet to “knowingly purchase tens of millions of dollars in crime proceeds” and then move the money into bank accounts belonging to The Epoch Times. Guan and his unnamed alleged co-conspirators at the company moved the money via “tens of thousands of layered transactions” that exploited stolen identities and prepaid debit cards, the Justice Department explained.
The sophisticated scheme boosted revenue flowing into the coffers of The Epoch Times, the Justice Department said. In one year, revenue at the Trump-boosting outlet ballooned 410%, jumping from $15 million to about $62 million, the Justice Department added.
While The Epoch Times receives little media attention in comparison to other pro-Trump outlets, such asFox News, its reach and support for the disgraced former president and his MAGA movement cannot be overstated.The New York Timesreferred to itas “one of the country’s most powerful digital publishers” andThe Atlanticflatly called ita “pro-Trump propaganda machine.”
For years, the fledgling nonprofit publication was merely a niche, hardcopy newspaper that advanced theFalun Gong, a religious movement banned in China. But shortly after the 2016 election, it underwent a significant digital transformation, which was fueled by a firehose of traffic fromFacebook. The outlet also purchased millions of dollars in advertisem*nts on theMark Zuckerberg-owned platform, catapulting The Epoch Times from merely being handed out on city street corners into the feeds of millions of Americans from coast to coast.
The outlet blanketed Facebook with algorithmically supercharged pro-Trump and conspiratorial content, often sending its stories viral and rocketing to the top of publishing charts, surpassing more established legacy news operations. Ultimately, Facebook banned the outlet from purchasing advertisem*nts in 2019 afterNBC Newsreported onits “effort to obfuscate its connection to some $2 million worth of ads that promoted [Trump] and conspiracy theories about his political enemies.”
On its website, The Epoch Times claims to be “grounded in ethical journalism” and employ reporters “guided by the highest code of conduct and ethics in their reporting” — a narrative punctured by the Justice Department’s indictment.
In a short statement, which notably was delivered into my inbox from an unnamed spokesperson via a generic “media inquires” email address, The Epoch Times said it will cooperate with federal authorities. The company added that Guan is “innocent until proven guilty beyond a reasonable doubt,” but that it had “suspended him until this matter is resolved.”
Suffice to say, that statement does not answer much. For one, the indictment from the Justice Department indicated that an entire “Make Money Online” team at The Epoch Times —not just Guan— was involved in the alleged conspiracy. And it strongly suggested that senior leaders at the organization should have been aware of the wrongdoing, given that a number of people and institutions had contacted The Epoch Times about the suspicious activity.
But, when CNN asked for further comment on Tuesday, The Epoch Times brass chose to stay mum.John Tang, the chief executive, andJasper Fakkert, the editor-in-chief, did not respond to multiple emails seeking basic information.
Have any of the outlet’s assets been frozen as part of the probe? The indictment said there was an entire group at The Epoch Times that took part in the alleged money laundering scheme. Have they also been suspended? Notably, Tang and Fakkert declined to answer questions about whether they were aware of the alleged scheme. But if they were not, are they conducting their own probe into the matter? They won’t say.
It’s also unclear how companies that do business with The Epoch Times will respond.Outfront Media, which sells billboard space across the country, did not respond to inquires about whether it will continue its relationship with the embattled outlet. AndPayPal, which facilitates online donations to the organization, declined to comment.
When asked on Tuesday whether further charges could be brought in the case given the sprawling nature of the alleged scheme, a Justice Department spokesperson declined to comment. But one wonders whether other leaders at the organization —or the non-profit itself— could soon face legal trouble.
