US: Ex-Newsday executive pleads guilty

Posted by Diana Epstein on April 4, 2006 at 12:07 PM

In the federal investigation into circulation fraud in 2004, Louis Sito, a former business executive at Newsday and later a vice president of Tribune Co., surrendered to charges related to his role in the newspaper’s circulation scandal.

Tribune Co. acknowledged that Newsday's circulation had been inflated by nearly 100,000 copies, and Hoy’s [Newsday’s sister Spanish-language paper Hoy-founded by Sito], circulation had been doubled. Along with inflating numbers the newspaper was accused of dumping copies. The company, based in Chicago, has paid advertisers about $90 million in restitution.

Although a plea deal would avoid an expensive legal battle, it is yet to be seen what charges he will face. In addition to Sito were four lower-level former Newsday executives, who worked under him, who have already been indicted in the federal investigation. One of them, Robert Brennan, former vice president for circulation, has been cooperating with investigators.

Sito had been Newsday’s vice president of advertising and circulation. Based on the newspaper Hoy's success, he had been promoted to vice president of Hispanic media for Tribune, the owner of Newsday since 2000. He had retired two years ago after the Tribune admitted that the circulation of both papers had been overstated

(See related posting: US: Industry practices on circulation reviewed)

Sources: Los Angeles Times, New York Daily News, and the New York Post

Posted in :