Publishing companies IBT Media and Christian Media, and executives with those companies, are facing fraud charges for their involvement in an alleged fraud and money-laundering conspiracy involving Newsweek magazine. The district attorney's office recently conducted an investigation, which included raiding IBT's offices.
Etienne Uzac, co-founder of IBT, William Anderson, former chief executive and publisher of Christian Media and various unnamed co-conspirators were charged with making multiple misrepresentations, including statements regarding the financial status of Newsweek, to defraud lenders. According to prosecutors, the alleged perpetrators pretended to borrow money for high-end computing services and instead put the money into their own accounts. Uzac and Anderson were also accused of creating a fake accounting firm and fake financial statements to trick lenders into giving them millions of dollars. A computer company was also criminally charged for providing low-quality computers instead of the expensive ones listed in the invoices.
Uzac has denied the claims, alleging that these claims are the district attorney's way of retaliating against Newsweek for reporting on contributions the attorney received from Harvey Weinstein's attorney. Anderson's lawyer has also denied any wrongdoing. Both men will be arraigned in court this month.
When many people think of theft, they think of the act of physically taking an item from another person without consent. However, theft can occur in many different ways. One of the most common theft crimes in the business world involves theft by fraud, where a business person intentionally makes false or misleading statements to induce someone into giving them money or entering a deal. If you are facing fraud charges, it may be in your best interest to speak to a New York attorney as soon as possible.