Epoch Times CFO's Money Laundering Indictment Stains Local Affiliates
Several local organizations affiliated with the Epoch Times are implicated in the federal charges.
By David Ofshinsky
The June 3 indictment of Weidong “Bill” Guan, chief financial officer of the Epoch Times, by the U.S. Attorney for the Southern District of New York on money laundering charges indicated that the money benefitted Guan, the company and its affiliates and appears to have far reaching implications.
The Epoch Times has tax exempt 501 (c) 3 nonprofit status from the IRS. A nonprofit organization is required to file an information return, Form 990, with the IRS each year, detailing its operations. A review of 990 filings by the Epoch Times and other non-profits associated with it disclosed a web of interconnected financial transactions.
In 2020, the first year of Gaun’s alleged money laundering of $67 million, Epoch Times revenues jumped from $15.5 million, roughly where they had been for several years, to $70.6 million. In 2021, revenue was up to $121.6 million; in 2022, the last year for which information is available, revenue was $128 million.
Starting in 2020, the Epoch Times began making cash grants to various organizations. Prior to 2020, no cash grants are reported. The grants were:
2020
Shen Yun Performing Arts, Cuddlebackville, NY, $3 million;
Universal Communications Network, doing business as New Tang Dynasty, NY, NY, which is listed as a related organization, $1 million;
2021
Shen Yun, $10.4 million;
New Tang Dynasty, $8.3 million;
Epoch Public Foundation, Houston, TX, which is listed as a related organization, $4.7 million;
Community Service Coalition, Elmhurst, NY, $3.9 million;
Fei Tian College, Cuddebackville, $2.5 million;
American Federation for Aging Research, NY, NY, $241,000;
Falun Gong Club of Orange Co., Otisville, NY, $60,000;
2022
Epoch Public Foundation, Huston, TX, $11 million;
New Tang Dynasty, $41.4 million.
About the organizations:
The Epoch Public Foundation, on the 990 form, states that its mission is to support the Epoch Times and the New Tang Dynasty. Its IRS filings are inconsistent and confusing. In 2015 it showed revenue of $802,558; in 2016 it showed $271,774 in revenue. In 2017 it listed revenue of only $8,600, and there were no filings in 2018 or 2019. In 2020 it showed $2 million in revenue, $12 million of revenue in 2021, and revenue of $3.7 million in 2022, which apparently omits the $11 million Epoch Times reported it gave them that year. In 2021 it also listed a liability of $20.6 million in federal income taxes, which is not further explained and is uncharacteristic for a tax-exempt organization.
Universal Communications Network, dba New Tang Dynasty, is a multilingual American television broadcaster founded in 2001 by members of the Falun Gong religious movement under the Epoch Media Group, which also includes the Epoch Times newspaper. In 2022 the New Tang Dynasty reported giving $1.3 million to the Epoch Public Foundation.
Little information can be found on the Community Service Coalition in Elmhurst, NY, founded in 2010. Lucy Zhou is listed as the principal officer, and no stated purpose or mission can be found online. The organization has been filing Form 990N, a simplified on-line reporting procedure for non-profit organizations with $50,000 or less in revenue in a given year, and no public disclosure of any financial data is provided. The $3.9 million received in 2021, however, would require the filing of a full Form 990.
The Falun Gong Club of Orange County lists its purpose as organizing group studies of Falun Gong teachings in private homes and online, and raising awareness of the persecution of Falun Gong by the Chinese Communist Party. The organization is classified as a private foundation rather than a public charity.
Private foundations are nonprofit charitable entities generally created by a single benefactor, usually an individual or a business, through an endowment of funds, whereas public charities use publicly collected funds. While the club was granted its non-profit status in 2018, the only IRS filing that could be found was for 2020, listed as its initial return. Only the name and address section of the return is completed, but no financial data is included.
Shen Yun Performing Arts is a performing arts and entertainment company that tours internationally, performing dance and symphonic music. Operated by the Falun Gong religious movement, they are headquartered at the Dragon Springs compound.
Fei Tian College is listed by the Commission on Independent Colleges and Universities as offering Bachelor of Arts degrees in classical Chinese dance and music performance. The college holds institutional accreditation from the NY Board of Regents and is located in the Dragon Springs compound in Cuddebackville.
The mission of the American Federation for Aging Research, according to its 990 form, is to support and advance healthy aging through biomedical research, including development of the next generation of aging researchers.
While New Century Film was not noted to have received any cash grants, Epoch Times co-sponsors events with them, such as the America the Beautiful Festival scheduled for July at New Century’s location at Neversink Drive and US Rt. 209 in Deerpark.
When contacted, New Century Film executive Peter Wei said that Guan’s indictment has not had any impact on New Century’s operations. When asked to describe the relationship between New Century and Epoch Times, Wei declined to comment.
A government watchdog group, Accountable.US, recently filed a complaint with the IRS requesting an immediate investigation into the Epoch Public Foundation and the Epoch Times for the apparent inconsistencies and reporting errors in the organization’s 990 filings. Given the amount and complexity of the transactions involved, further charges being brought against other individuals and organizations are possible.
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