[Rant Boss]

From today's NY Post

NEWSDAY PLEAS
EXECS COP TO FRAUD FOR
FLEECING ADVERTISERS

By ZACH HABERMAN

May 27, 2006 -- Three former executives at Newsday and its Spanish-language sister paper, Hoy, pleaded guilty to fraud conspiracy yesterday for their roles in a circulation scandal that fleeced advertisers.
Ousted managers Richard Czark, who worked for Hoy's circulation department, Robert Garcia, a Newsday circulation boss, and home delivery manager Dennis Springer admitted to mail fraud conspiracy in Brooklyn federal court as did three other players in the circulation scandal.

Nine people have pleaded guilty in the past two months to taking part in the scam, including former Hoy Publisher and Tribune Co. Vice President Louis Sito, who pleaded guilty in early April.

"We were told it was basically sink or swim," Springer, 54, who faces up to 10 years behind bars, told Magistrate Judge Kiyo Matsumoto. "We didn't agree with what was going on, but we did it anyway."

Garcia, 44, admitted submitting inflated numbers to the Audit Bureau of Circulations knowing it would boost the paper's advertising rates.

He now faces a 15-year prison stint, while Czark faces just over 8 years in prison.

Also opting out of facing a jury was Dot McKillop, 46, who worked in Newsday's home delivery department, and distributor John Faella.

The distributor claimed to be selling up to 30,000 copies of Newsday on any given day, when he actually sold only about 7,000 and simply dumped the rest.

Tribune, the parent company of Newsday and Hoy, was forced to pay roughly $90 million in restitution to advertisers as a result of the probe, which one law enforcement source said may not be finished.

"The investigation is going forward," said the source, who would not elaborate on whether the feds have set their sights on Tribune's higher-ups.

Brooklyn U.S. Attorney's Office spokesman Robert Nardoza declined to comment on whether yesterday's admissions signaled the end of their probe into the circulation scandal or if more people would be charged.

"We have cooperated with the authorities in every way possible from the outset of their investigation and will continue to do so," said Newsday spokeswoman Deidra Parrish Williams.