October 11, 2018

Newsweek magazine’s former parent company hit with $10M fraud indictment

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

The magazine’s former owners, Christian Media Corp. and IBT Media, and its executives instead diverted the money to pay for day-to-day operations and past financial obligations, Manhattan prosecutors allege.

The indictment comes nearly 10 months after investigators with the Manhattan DA’s office raided Newsweek’s offices for information about the magazine’s computer servers.

Read the source article in the New York Daily News.

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