Media

Newsweek Media Group Chairman Steps Down In Midst Of Scandals

The co-founder of Newsweek Media Group, the parent company of Newsweek, has resigned as chairman two weeks after the company’s headquarters was raided by the Manhattan district attorney as part of an ongoing financial fraud investigation.

Etienne Uzac, as well as his wife and the company’s financial director Marion Kim, both stepped down from their respective positions, according to a report from Newsweek Thursday.

Newsweek staff members declined to comment on the matter to The Daily Caller News Foundation.

The Manhattan District Attorney’s office began a grand jury investigation at least 17 months ago and reportedly includes an investigation into NMG’s finances.

Investigators were seen rolling out company servers from its New York office on Jan. 18.

“Consistent with its expressed policy regarding law enforcement, Newsweek Media Group, a responsible media company, will continue to cooperate with the DA’s office to the fullest extent,” the company said in a statement.

Uzac and Kim’s resignations also come directly after BuzzFeed News published a story alleging that NMG had been “engaging in fraudulent online traffic practices” in order to garner more ad revenue. In December 2017, the IRS filed a $1.2 million lien against Uzac.

On Monday, NMG’s chief content officer, Dayan Candappa, was placed on leave following news that he was accused of sexual harassment at his previous job.

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