(They've set aside $90 Million to refund advertisers they ripped off)
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by David Folkenflik
NPR.org, June 15, 2005 · An ongoing newspaper industry scandal in which some well-known dailies falsified circulation figures broadened on Wednesday with the unveiling of criminal charges against three former employees of the Tribune Company.
The federal government arrested three former mid-level circulation executives for Newsday, a daily newspaper based in Long Island, N.Y., and the Spanish-language daily Hoy for conspiring to commit fraud, and other crimes.
Newsday is a Pulitzer-winning tabloid that, before the circulation scandal, had been among the nation's 10 largest newspapers. It has long staked a claim as a quality daily in the shadow of the New York Times. Hoy, Tribune's foray into the Latino market, is based in Queens, N.Y., and published daily editions in New York, Los Angeles and Chicago.
Last year, the Chicago-based Tribune Co. acknowledged that circulation levels had been inflated by as much as 20 percent at Newsday, and as much as 50 percent for daily sales of Hoy. Circulation for the two papers relied on many of the same people -- including two of the defendants.
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