By: E&P Staff
Several former Newsday employees are working with federal prosecutors in relation to the circ fraud that occurred there and at its sister publication Hoy. Some executives are negotiating plea bargains and four other people are expected to enter guilty pleas, Newsday reported Thursday.
On Wednesday, federal agents arrested three former Newsday employees charged with conspiracy to commit mail fraud. Former Newsday circulation manager Edward Smith, 65, and Robert Garcia, 42, former circ and distribution manager for Newsday and Hoy, were apprehended Wednesday at their New York homes. Richard Czark, 53, former senior vice president of circulation at Hoy, was arrested in Bluffton, S.C.
Smith and Garcia were handcuffed and taken to U.S. District Court in Brooklyn; they were released on $250,000 bail. Czark was brought to a federal magistrate in South Carolina and released.
U.S. Attorney Roslynn Mauskopf told Newsday, ?[The] arrests … are intended to restore transparency and fairness to the newspaper and magazine advertising marketplace.?
The charge, filed by postal inspectors, alleges the three former managers were involved in circulation fraud between 2002 and 2004.