A Former Owner of Newsweek Pleads Guilty in a Fraud Scheme

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A Former Owner of Newsweek Pleads Guilty in a Fraud Scheme
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NEW YORK -- The Manhattan district attorney's office seized 18 computer servers from the headquarters of Newsweek magazine in Lower Manhattan on Jan. 18, 2018. On Friday, the raid yielded guilty pleas to fraud and money-laundering charges from two publishing executives in Manhattan Criminal Court.Etienne

NEW YORK — The Manhattan district attorney’s office seized 18 computer servers from the headquarters of Newsweek magazine in Lower Manhattan on Jan. 18, 2018. On Friday, the raid yielded guilty pleas to fraud and money-laundering charges from two publishing executives in Manhattan Criminal Court.

The pleas followed a yearslong investigation of ties between IBT Media and David Jang, a South Korean pastor, and Olivet University, a small Bible college he founded in Southern California. Journalists at Newsweek, including two top editors and a reporter, were fired in 2018 after they looked into IBT Media’s financial dealings and legal troubles in the weeks after the raid. Several others resigned. The district attorney’s office filed criminal charges against Uzac and Anderson in October 2018, accusing them of a multimillion-dollar fraud and money-laundering conspiracy.

In a statement Friday, Vance called the crime “a massive fraud scheme through which a group of sophisticated criminals illegally moved tens of millions through our Manhattan marketplace by brazenly overstating the financial health of their companies.”

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