United States v. Harvey Newkirk, Southern District of New York (Apr. 1, 2015) — Complaint

    UNITED STATES ATTORNEY’S OFFICE 
 Southern District of New York 
 
 U.S. ATTORNEY PREET BHARARA 
 
FOR IMMEDIATE RELEASE   CONTACT:      U.S. ATTORNEY’S OFFICE 
Wednesday, April 1, 2015          Jim Margolin, Jennifer Queliz, 
http://www.justice.gov/usao/nys          Betsy Feuerstein, Dawn Dearden 
                   (212) 637-2600 
 
U.S. Secret Service            FBI 
Michael Seremetis             Christos Sinos, J. Peter Donald,  
(718) 840-1000             Adrienne Senatore, Kelly Langmesser                    
                 (212) 384-2100            
                    
 
NEW YORK ATTORNEY CHARGED IN MULTIMILLION-DOLLAR 
FRAUD SCHEME TO PURCHASE NATIONALLY CIRCULATED 
MAGAZINE 
Preet Bharara, the United States Attorney for the Southern District of New York, Robert 
J. Sica, the Special Agent-in-Charge of the New York Office of the United States Secret Service, 
and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal 
Bureau of Investigation (“FBI”), announced that HARVEY NEWKIRK, formerly counsel at a 
law firm in Manhattan, was arrested today for participating in a scheme to fraudulently induce 
lenders to provide millions of dollars to a company associated with a co-conspirator (“CC-1”) for 
the attempted purchase of a nationally circulated magazine and related assets (the “Magazine”).  
NEWKIRK surrendered this morning to the Secret Service, and was presented this afternoon in 
Manhattan federal court before U.S. Magistrate Judge James L. Cott.  
 Manhattan U.S. Attorney Preet Bharara said: “As alleged, Harvey Newkirk shirked his 
ethical responsibilities as a lawyer when he participated in a multimillion-dollar fraud scheme, in 
which deception and misrepresentations were legion, in order to obtain the funds to purchase a 
national magazine.  Fortunately, thanks to our law enforcement partners at the Secret Service and 
the FBI, Newkirk was apprehended and must now answer for his alleged conduct.”   
 Secret Service Special Agent-in-Charge Robert Sica said: “The arrest of Harvey Newkirk 
is another example of the Secret Service's expertise in combating fraud and financial crimes.  
Our success in this case and other similar investigations is a result of the extraordinary work of 
our investigators and our close work with our network of law enforcement partners.” 
 FBI Assistant Director-in-Charge Diego Rodriguez said:  “Lying to lenders, creating 
fictitious documents, and purporting to be someone’s attorney are serious crimes. Newkirk’s 
alleged elaborate fabrications – in a ridiculous attempt to purchase a nationally circulated 
magazine – have finally been unveiled.” 

2 
 
According to the allegations contained in the Complaint filed today in Manhattan federal 
court: 
 From August 2013 to February 2014, in connection with the potential purchase of the 
Magazine by a media company (the “Media Company”) associated with CC-1, NEWKIRK and 
CC-1 made a series of misrepresentations to lenders to induce these lenders to provide millions 
of dollars in capital to the Media Company for the purchase of the Magazine.   
 As part of the scheme, in order to mislead lenders into believing that they would receive 
sufficient collateral for their loans, NEWKIRK falsely promised lenders that assets owned by the 
father of CC-1 (the “Executive”) would be pledged as security for the loans.  NEWKIRK made 
these promises without the authorization or knowledge of the Executive.  In one instance, 
NEWKIRK and CC-1 provided a lender with account statements that purported to show the 
Executive’s holdings in the stocks of at least three publicly traded companies.  NEWKIRK 
misled the lender into believing that the Executive’s alleged stock holdings in these companies, 
as reflected in the account statements, would serve as collateral for the loan.  In truth, however, 
the account statements were fake documents and the Executive was not providing any financial 
support for the purchase of the Magazine. 
 Furthermore, after one of the lenders (“Lender-2”) placed approximately $5.5 million in 
escrow at the Manhattan law firm at which NEWKIRK was then counsel (the “Law Firm”), CC-
1 arranged for a fraudulent email to be sent that purported to have been from Lender-2 to 
NEWKIRK.  In response to that fraudulent email,  NEWKIRK released approximately $4.9 
million of Lender-2’s money from the escrow account to fund the Media Company’s purchase of 
the Magazine.  NEWKIRK also attempted to forward $535,000 of Lender-2’s money to a 
different potential lender, in order to pay a debt owed to that potential lender.  NEWKIRK did so 
without Lender-2’s knowledge or authorization. 
 Throughout the course of the scheme, NEWKIRK repeatedly lied to lenders regarding his 
relationship with the Executive, falsely purporting to be the Executive’s attorney despite having 
met the Executive on only one prior occasion.  In addition, NEWKIRK attempted to hide from 
the Executive the existence of a lawsuit filed by one lender, in which that lender sought to obtain 
the Executive’s assets that NEWKIRK had pledged to the lender without the Executive’s 
knowledge.  NEWKIRK also falsely represented to another lender, from whom NEWKIRK and 
CC-1 were seeking $20,000,000 in financing for the Magazine purchase, that approximately 
$12,000,000, representing funds provided by, or secured by the personal assets of, the Executive 
for the Magazine purchase, had been placed in escrow at the Law Firm.  In fact, no funds were 
ever held in escrow at the Law Firm in connection with the Magazine purchase, other than the 
$5.5 million placed in escrow by Lender-2, and subsequently misappropriated by NEWKIRK. 
 In March 2015, during a consensual interview with law enforcement, NEWKIRK 
admitted that the Executive had not been NEWKIRK’s client despite NEWKIRK’s multiple 
representations to the contrary to various lenders throughout the course of the attempted 
purchase of the Magazine. 

3 
 
 On November 4, 2014, CC-1 pled guilty before the Honorable Jed S. Rakoff to, among 
other things, charges related to CC-1’s participation in the scheme to defraud lenders for the 
attempted Magazine purchase. 
* * * 
 NEWKIRK, 39, of New Rochelle, New York, is charged with one count of conspiracy to 
commit wire fraud and one count of wire fraud, each of which carries a maximum term of 20 
years in prison.  He is also charged with one count of aggravated identity theft, which carries a 
mandatory minimum and maximum sentence of two years in prison. The maximum potential 
sentences in this case are prescribed by Congress and are provided here for informational 
purposes only, as any sentencing of the defendant will be determined by the judge. 
  Mr. Bharara praised the investigative work of the United States Secret Service and the 
FBI.    
The prosecution of this case is being overseen by the Office’s Complex Frauds and 
Cybercrime Unit.  Assistant U.S. Attorneys Andrew C. Adams and Sarah E. Paul are in charge of 
the prosecution.   
 
 The charges contained in the Complaint are merely accusations, and the defendant is 
presumed innocent unless and until proven guilty. 
 
15-089      ### 
 

UNITED STATES ATTORNEY’S OFFICE 

 Southern District of New York 
 
 U.S. ATTORNEY PREET BHARARA 

 
FOR IMMEDIATE RELEASE   CONTACT:   U.S. ATTORNEY’S OFFICE 
Wednesday, April 1, 2015          Jim Margolin, Jennifer Queliz, 
http://www.justice.gov/usao/nys         Betsy Feuerstein, Dawn Dearden 
                   (212) 637-2600 
 
U.S. Secret Service            FBI 
Michael Seremetis             Christos Sinos, J. Peter Donald,  
(718) 840-1000             Adrienne Senatore, Kelly Langmesser                  
                 (212) 384-2100          
                    
 

NEW YORK ATTORNEY CHARGED IN MULTIMILLION-DOLLAR 
FRAUD SCHEME TO PURCHASE NATIONALLY CIRCULATED 

MAGAZINE 

Preet Bharara, the United States Attorney for the Southern District of New York, Robert 
J. Sica, the Special Agent-in-Charge of the New York Office of the United States Secret Service, 
and Diego Rodriguez, Assistant Director-in-Charge of the New York Field Office of the Federal 
Bureau of Investigation (“FBI”), announced that HARVEY NEWKIRK, formerly counsel at a 
law firm in Manhattan, was arrested today for participating in a scheme to fraudulently induce 
lenders to provide millions of dollars to a company associated with a co-conspirator (“CC-1”) for 
the attempted purchase of a nationally circulated magazine and related assets (the “Magazine”).  
NEWKIRK surrendered this morning to the Secret Service, and was presented this afternoon in 
Manhattan federal court before U.S. Magistrate Judge James L. Cott.  

 Manhattan U.S. Attorney Preet Bharara said: “As alleged, Harvey Newkirk shirked his 
ethical responsibilities as a lawyer when he participated in a multimillion-dollar fraud scheme, in 
which deception and misrepresentations were legion, in order to obtain the funds to purchase a 
national magazine.  Fortunately, thanks to our law enforcement partners at the Secret Service and 
the FBI, Newkirk was apprehended and must now answer for his alleged conduct.”   

 Secret Service Special Agent-in-Charge Robert Sica said: “The arrest of Harvey Newkirk 
is another example of the Secret Service's expertise in combating fraud and financial crimes.  
Our success in this case and other similar investigations is a result of the extraordinary work of 
our investigators and our close work with our network of law enforcement partners.” 

 FBI Assistant Director-in-Charge Diego Rodriguez said:  “Lying to lenders, creating 
fictitious documents, and purporting to be someone’s attorney are serious crimes. Newkirk’s 
alleged elaborate fabrications – in a ridiculous attempt to purchase a nationally circulated 
magazine – have finally been unveiled.” 

http://www.justice.gov/usao/nys


2 
 

According to the allegations contained in the Complaint filed today in Manhattan federal 
court: 

 From August 2013 to February 2014, in connection with the potential purchase of the 
Magazine by a media company (the “Media Company”) associated with CC-1, NEWKIRK and 
CC-1 made a series of misrepresentations to lenders to induce these lenders to provide millions 
of dollars in capital to the Media Company for the purchase of the Magazine.   

 As part of the scheme, in order to mislead lenders into believing that they would receive 
sufficient collateral for their loans, NEWKIRK falsely promised lenders that assets owned by the 
father of CC-1 (the “Executive”) would be pledged as security for the loans.  NEWKIRK made 
these promises without the authorization or knowledge of the Executive.  In one instance, 
NEWKIRK and CC-1 provided a lender with account statements that purported to show the 
Executive’s holdings in the stocks of at least three publicly traded companies.  NEWKIRK 
misled the lender into believing that the Executive’s alleged stock holdings in these companies, 
as reflected in the account statements, would serve as collateral for the loan.  In truth, however, 
the account statements were fake documents and the Executive was not providing any financial 
support for the purchase of the Magazine. 

 Furthermore, after one of the lenders (“Lender-2”) placed approximately $5.5 million in 
escrow at the Manhattan law firm at which NEWKIRK was then counsel (the “Law Firm”), CC-
1 arranged for a fraudulent email to be sent that purported to have been from Lender-2 to 
NEWKIRK.  In response to that fraudulent email, NEWKIRK released approximately $4.9 
million of Lender-2’s money from the escrow account to fund the Media Company’s purchase of 
the Magazine.  NEWKIRK also attempted to forward $535,000 of Lender-2’s money to a 
different potential lender, in order to pay a debt owed to that potential lender.  NEWKIRK did so 
without Lender-2’s knowledge or authorization. 

 Throughout the course of the scheme, NEWKIRK repeatedly lied to lenders regarding his 
relationship with the Executive, falsely purporting to be the Executive’s attorney despite having 
met the Executive on only one prior occasion.  In addition, NEWKIRK attempted to hide from 
the Executive the existence of a lawsuit filed by one lender, in which that lender sought to obtain 
the Executive’s assets that NEWKIRK had pledged to the lender without the Executive’s 
knowledge.  NEWKIRK also falsely represented to another lender, from whom NEWKIRK and 
CC-1 were seeking $20,000,000 in financing for the Magazine purchase, that approximately 
$12,000,000, representing funds provided by, or secured by the personal assets of, the Executive 
for the Magazine purchase, had been placed in escrow at the Law Firm.  In fact, no funds were 
ever held in escrow at the Law Firm in connection with the Magazine purchase, other than the 
$5.5 million placed in escrow by Lender-2, and subsequently misappropriated by NEWKIRK. 

 In March 2015, during a consensual interview with law enforcement, NEWKIRK 
admitted that the Executive had not been NEWKIRK’s client despite NEWKIRK’s multiple 
representations to the contrary to various lenders throughout the course of the attempted 
purchase of the Magazine. 



3 
 

 On November 4, 2014, CC-1 pled guilty before the Honorable Jed S. Rakoff to, among 
other things, charges related to CC-1’s participation in the scheme to defraud lenders for the 
attempted Magazine purchase. 

* * * 

 NEWKIRK, 39, of New Rochelle, New York, is charged with one count of conspiracy to 
commit wire fraud and one count of wire fraud, each of which carries a maximum term of 20 
years in prison.  He is also charged with one count of aggravated identity theft, which carries a 
mandatory minimum and maximum sentence of two years in prison. The maximum potential 
sentences in this case are prescribed by Congress and are provided here for informational 
purposes only, as any sentencing of the defendant will be determined by the judge. 

  Mr. Bharara praised the investigative work of the United States Secret Service and the 
FBI.    

The prosecution of this case is being overseen by the Office’s Complex Frauds and 
Cybercrime Unit.  Assistant U.S. Attorneys Andrew C. Adams and Sarah E. Paul are in charge of 
the prosecution.   
 
 The charges contained in the Complaint are merely accusations, and the defendant is 
presumed innocent unless and until proven guilty. 
 
15-089      ###