Newsweek's former parent company indicted in fraud and money laundering case
The co-founder of Newsweek's former parent company has been indicted on fraud and money laundering charges in New York Supreme Court.
Etienne Uzac and IBT Media are accused of conspiring with two other companies to defraud lenders out of money that the media organization used to keep itself in business, according to an indictment that was unsealed Wednesday. Uzac denied the allegations and said he intends to defend himself "vigorously" against the charges.
Prosecutors allege that IBT Media worked with Christian Media Corporation and Oikos Networks to pull off the scheme.
The indictment alleges IBT and Christian Media convinced equipment lenders that they needed financing to buy computer equipment. They received the funds — but instead of using the money to buy computer servers, the indictment says the companies funneled it into other parts of their business.
https://www.cnn.com/2018/10/11/media/newsweek-indictment-ibt-media/index.html
