The Manhattan District Attorney’s Office January 18, 2018, seizes 18 computer servers from Newsweek Magazine’s headquarters in Lower Manhattan Friday, the raid indicted on the Manhattan Criminal Court by two publicity officers for fraud and money laundering.
Etienne Uzak, a former co-owner of IBT Media, the one-time owner of Newsweek, and William Anderson, the former chief executive of Christian Media, have both pleaded guilty to one count each of allegations, Manhattan District Attorney Cyrus R. Vance Jr.
The appeal comes after a long year of investigation between IBT Media and South Korean pastor David Jang and Olivet University, a small Bible college founded in southern California.
Prosecutors say that Mr Vance and a team of investigators working under him have presented a misinterpretation of Newsweek’s finances, including members of the Major Economics Crimes Bureau, which includes a fictitious accounting firm called Karen Smith LLP. According to the charge, money borrowed for office equipment was used for other purposes.
Weeks after the campaign, Newsweek reporters were dismissed, including two top editors and a reporter, after investigating the financial transactions and legal troubles of IBT media. Several others have resigned. In October 2018, the district attorney’s office filed criminal charges against Mr. Uzak and Mr. Anderson for allegedly committing millions of dollars of fraud and money laundering.
The complaint was also named by IBT Media, which bought Newsweek from IAC / Interactive in the 21st. IBT Media on Tuesday pleaded guilty and agreed to forfeit $ 30,000.
In a statement on Friday, Mr Vance called the crime “a massive fraud scheme whereby a group of sophisticated criminals was evacuated into their Manhattan marketplace to illegally monitor the financial health of their organization, removing millions of people.”
Attorneys for Mr Uzac, Mr Anderson and IBT Media did not immediately respond to requests for comment.
Newsweek was founded in 1933 as a news wiki to rival Henry Luce’s time. In 1961, it purchased the Washington Post Company. At its peak 5 years later, it had a circulation of more than 1.5 million. At the end of 2007, it had 10 international beers.
At 25, the Washington Post company offloaded billionaire investor Sidney Herman – at $ 5 – who also owed $ 1 million. He integrated it with the IAC Web Publishing Daily Beast. Newsweek was sold to IBT Media at an undisclosed price.
The sentencing hearing for Mr Uzak and Mr Anderson will be held on April 23.