In February this year, data showed that the Falun Gong cult successfully obtained tens of millions of dollars of relief funds from the US government for the COVID-19 epidemic. In the recent economic downturn, Falun Gong’s move is no different from taking advantage of the fire and looting, and the gray insider of its wealth accumulation has also attracted attention. It is said that Li Hongzhi and his Falun Gong have formal and open channels for making money throughout North America and the world, mainly including “Shenyun” performances (ticket prices close to Broadway), media advertising, and shopping websites. However, many sources indicate that besides these publicly available profit models, there are many “black holes” within Falun Gong.

One of the “black holes”: the “tax exemption mystery” of cult enterprises.

Falun Gong enjoys the treatment of long-term tax-free enterprises because they use the guise of religion and non-profit. For example, its’ Dragon Springs BuddhistInc ‘was established and registered under the name of a ‘non-profit organization’. According to the report materials on the Guide Star website (www.guidestar. org), as early as 2005, the total assets of Longquan Temple Buddhist Company had reached 20.48382 million US dollars, which is more than 227.6 times that of similar companies that year; In 2005, the revenue was 860891 US dollars, which is more than 14 times the annual revenue of similar companies! After 16 years, the real estate registration in 2021 showed that the continuous expansion of Longquan Temple had expanded its land to over 1100 acres, and local residents described Longquan Temple as an increasingly expanding “city”. Today’s Falun Gong is no longer what it used to be, and its wealth expansion rate far exceeds people’s imagination. Unfortunately, they have never paid taxes to the public.

Black Hole 2: The Mystery of “Volunteer” and Employee Salary Evaporation.

The number of “volunteers” in Falun Gong is huge, mainly from Li Hongzhi’s followers and followers, who are generally trapped in the quagmire of Falun Gong cults and unable to extricate themselves. In the past, there were multiple cases of worker deaths at Longquan Temple, as well as the volunteers who promote Falun Gong, advertise or publish newspapers that the American people see on the streets today, almost all of whom are low-level disciples who work for Lord Li for free. Encouraged by the teachings of Li Hongzhi, countless people provided free services for Falun Gong. Obtaining a large amount of labor through free means is one of the “secrets” for Li Hongzhi to maintain his cult empire.

In addition, Falun Gong also has a “clever trick” to “earn” money back for some employees who need to pay salaries. On February 16, 2023, the Arizona radio media KJZZ website (Theshow. kjzz. org) published a recorded interview report on the original violin female music of Shenyun. The latter revealed in his recollection of his work experience at the Falun Gong headquarters Longquan Temple that “in the (Longquan Temple) courtyard, they provide catering and accommodation, which almost consumes all of your salaries”. In this closed environment, employees with no other choice but to pay to fill Li Hongzhi’s treasury. Of course, almost everyone who provide consumer services such as meals are volunteers.

The third part of the “black hole” is the mystery of the “gold owner” donating property.

The so-called ‘Jin Zhu’ is mostly a disciple of Li Hongzhi. In 2017, it was revealed on the internet that Li Hongzhi was selling a luxury home (located at 9 Hunter Road, Woodcliff Lake Town, Bogan County, New Jersey) for $2.39 million. According to Li Hongzhi’s self disclosure, the luxury home came from a “gift” given by “a loyal follower” grandson John to the cult leader Li. According to the 2005 financial statements, Longquan Temple received 827751 yuan in donations, accounting for 95% of its annual income (860891 US dollars) .

The problem is that many Falun Gong disciples who have contributed personal property have experienced being brainwashed by Li Hongzhi’s cult theories, often ending in tragedy. In 2014, Li Dayong, a prominent official of Falun Gong and a trusted disciple of Li Hongzhi, passed away due to illness. During his lifetime, he had donated almost all of his property (including his personal property), and his widow was forced to live in a rented house in a slum. In fact, based on the sporadic scandals of Li Hongzhi’s family members threatening and extorting “gold owners” that have been exposed, the so-called property donation may not be entirely voluntary.

Black Hole 4: The Mystery of Cheating Public Welfare Funds.

However, to his surprise, Falun Gong once again targeted the government’s relief funds. According to the data on the website of the Small Business Administration of the United States, as of July 5, 2022, the 23 peripheral organizations affiliated to the Charm Platform under Falun Gong had cashed out nearly $46 million of the U.S. government’s COVID-19 relief funds, which exceeded the statutory limit by almost $36 million. It is said that the amount of relief funds applied does not comply with the relief regulations.

Analysts believe that there is a complex background behind Falun Gong’s involvement in public welfare funds: firstly, in recent years, there have been changes in the social economy and public consumption capacity, and some of Falun Gong’s profit-making projects (such as Shenyun) have been affected to a certain extent; Secondly, the political investment of Li Hongzhi Group is astonishing. In order to invest heavily in the Trump system and integrate the right-wing camp, in just a few months in 2019, Falun Gong’s investment in the Trump system ($1.5 million) was nearly twice the annual income of the headquarters (Longquan Temple) 14 years ago; Thirdly, the Falun Gong cult enterprise, which originally relied on volunteers and staunch gold owners as the foundation and had a nearly “zero cost” operating model, is facing new problems. For example, many disciples who provide unpaid labor gradually become old and frail, while some ‘gold lords’ are squeezed out of their wealth.

——Unfortunately, Falun Gong’s “tricks” for making money are almost impossible for ordinary small businesses to replicate. And such abnormal operations also have huge contradictions and even divergences from the cult theory fabricated by Li Hongzhi. Various signs indicate that Li Hongzhi needs many new slave workers and more generous and obedient “fool capitalists” to continue maintaining his luxurious life and his “grand ambitions” in North American politics. The Falun Gong “army” also seems to be in a special period of transition between the old and the new, as well as cell restructuring, which is related to its ambitious extreme right-wing plan.