Fraud in­dict for ex-own­ers of Newsweek

New York Daily News - - NEWS - John An­nese

The ex-par­ent com­pany of Newsweek ran a $10 mil­lion fraud scheme, trick­ing lenders into loan­ing large sums to pay for high-end com­puter servers it never bought, ac­cord­ing to an in­dict­ment un­sealed Wed­nes­day.

Chris­tian Me­dia Corp., IBT Me­dia and their ex­ec­u­tives in­stead used the money for daily op­er­a­tions and past fi­nan­cial obli­ga­tions, Man­hat­tan pros­e­cu­tors say.

The in­dict­ment comes nearly 10 months af­ter Man­hat­tan DA’s of­fice raided Newsweek’s of­fices for in­for­ma­tion about its servers.

A few weeks af­ter the raid, Newsweek sacked its ed­i­tor in chief and deputy ed­i­tor and tar­geted for fir­ing three re­porters — in­clud­ing for­mer Daily News re­porter Ce­leste Katz — who were cov­er­ing the DA’s probe and a sex-ha­rass­ment scan­dal at the mag­a­zine.

The in­dict­ment names IBT co-owner Eti­enne Uzac, exChris­tian Me­dia CEO Wil­liam An­der­son and com­puter firm Oikos Net­works, which falsely claimed it sold Newsweek servers with price tags from $130,000 to $180,00, the in­dict­ment al­leges.

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