Newsweek Parent Co Defrauds Lenders In $10M Scheme

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Newsweek’s former parent company has been charged with defrauding lenders out of millions of dollars in order to help the media organization stay in business.

According to the Wall Street Journal, the indictment comes after a more than yearlong investigation by the Manhattan District Attorney’s Office. IBT Media, which owned Newsweek during the alleged fraud but has since spun the publication off into a separate entity, is accused of partnering with Christian Media Corp., a faith-based online publisher in Washington, D.C., to carry out the fraud scheme.

The indictment states that top executives from both companies created fraudulent financial statements approved by a fake auditor to secure around $10 million in loans from three financial institutions,

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Read full article » https://www.pymnts.com/legal/2018/newsweek-parent-company-ibt-media-fraud-scheme/


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