Several media leaders and Olivet University's board chair have been convicted of fraud in an elaborate $35 million scandal, according to Christianity Today.
Christian Media Corporation's (CMC) CEO William Anderson — who was also the CEO and publisher of The Christian Post — and Etienne Uzac, former owner of IBT Media, a global digital news organization responsible for Newsweek, both entered guilty pleas last week for their involvement in fraudulently securing a $35 million loan.
The California-based Olivet University also pleaded guilty Thursday to falsifying its business records and participating in conspiracy, according to the district attorney's press officer. Olivet's board chair, Andrew Lin, was convicted of fraud and barred from leadership for the next two years.
In 2018, the media companies and Olivet University falsified financial records in order to secure $35 million in loans to purchase highly advanced computer servers. Instead, they bought much cheaper servers and used the loans for their daily operations while also transferring the funds to each other, the Manhattan District Attorney's office reported.
As a result of the money laundering scheme, CMC had to completely shut down and Olivet University is left with a $1.25 million fine.