The Florida Keys’ longtime public relations director, Andy Newman, is facing charges of perjury and making false official statements, the Monroe County State Attorney’s Office announced on Tuesday, Aug. 6. Newman turned himself in to authorities the morning of Wednesday, Aug. 7 and will be arraigned on Aug. 15.
The charges — 14 counts of perjury and 14 counts of false official statement — are first and second-degree misdemeanors that stem from a series of audits the county clerk’s office conducted beginning last year of the Monroe County Tourist Development Council and its public relations contract with NewmanPR, which is owned by Andy Newman. In addition, the state attorney’s office issued subpoenas and conducted its “own independent, in-depth forensic audit,” which uncovered what it says was a series of false declarations made by Newman concerning payments allegedly issued to a fictitious company called Graphics 71,” the state attorney’s report states.
The 14 counts of “perjury when not in an official proceeding,” each classified as a first-degree misdemeanor, “assert that Newman knowingly provided false statements under oath about payments to the nonexistent entity, Graphics 71.”
“Under Florida law, each count of perjury is punishable by up to 364 days in county jail and a $1,000 fine,” the report states.
The charges pertaining to “making false official statements,” each categorized as a second-degree misdemeanor, allege that “Newman submitted false written certifications to the Clerk of Court’s office, falsely claiming that payments were made to Graphics 71 to mislead public officials.”
Each count of making false official statements carries a potential penalty of up to six months in county jail and a $500 fine.
“Our investigation underscores the seriousness of these offenses,” State Attorney Dennis Ward said. “Integrity and honesty are cornerstones of public service, and we are committed to prosecuting those who engage in deceitful practices that undermine public trust.”
NewmanPR, which was launched by Andy Newman’s father, Stuart Newman, as Stuart Newman & Associates, has handled public relations for the Florida Keys’ tourism interests for more than 40 years. The job has involved marketing the Florida Keys to national and international media outlets by providing video and still news photography of noteworthy events, as well as bringing media to the island chain for such events, including CNN’s annual presence in Key West for New Year’s Eve, worldwide Fantasy Fest coverage and celebrity-studded fishing tournaments.
Newman and his attorney responded to questions about invoices that Newman submitted to Monroe County and that the county paid to the alleged fictitious company known as Graphics 71.
“Our review found that NewmanPR regularly requests to be reimbursed for invoices for a company named Graphics 71,” states the county’s October 2023 audit of the TDC’s financial operations. “We discovered that Graphics 71 is not an entity registered to do business in the State and the business name was not listed as an alias for a registered Florida business. We also could not find business tax payment records … for Graphics 71,” the audit report states. “During FY 22, NewmanPR was reimbursed $14,573 for Graphics 71 invoices and in FY 23 the amount reimbursed was $14,998.
“Using a nonexistent company as a vehicle to double bill the TDC shows a general disregard for the importance of ensuring that the TDC is spending Monroe County’s tourist development tax dollars lawfully and judiciously.”’
Newman’s attorney, Russ Yagel, denies any criminal wrongdoing on the part of his client.
“Andy Newman has not committed any criminal act,” Yagel said in a statement to Keys Weekly following the arrest. “The procedures followed by Andy Newman in connection with the submission of invoices for payment from the Monroe County Clerk of Court were inherited from his late father and had been approved by previous Monroe County Clerks of Court and Monroe County Tourist Development Council staff. To the extent there were any non-compliances with the current Clerk’s expectations, any such non-compliance was unknown, unintentional and immaterial. The funds paid to NewmanPR were paid in accordance with the terms of the agreements with Monroe County and fully earned by NewmanPR. Any suggestion or claim to the contrary is absolutely without merit.”
Newman’s response to audit findings
In his written responses to auditors’ follow-up questions, Newman and his attorney denied any double billing or wrongdoing and explained that the Graphics 71 invoices and payments reflected internal financial transfers and payments from NewmanPR to individual photographers and videographers. Newman’s explanation states:
“Graphics 71 was initiated as a separate entity within Stuart Newman Associates to properly document work done outside the scope of work detailed in our client contracts, not only with Monroe County, but others as well.
“Specifically, it focuses on photography, print production and an occasional video production project that would otherwise be done by an outside vendor. It is not commonplace for a PR firm to include photography and production charges within a contract, because it is extremely difficult if not impossible to predict what is going to be required within a budget year.
“We use a number of vendors to do projects and their selection is based on their experience to get the job done as well as their location. … Using those individuals provides us the ability to achieve coverage in major publications, news websites and broadcast platforms around the world….
“My father, the late Stuart G. Newman, came up with the concept to begin Graphics 71 sometime after I joined the company in 1980. My father oversaw the company’s finances up until his death in March 2019. … I believe Graphics 71 has been in existence for at least 35 years and, as far as Monroe County is concerned, the firm has been billing photo and production charges through Graphics 71 for a long time. (Our accountant) has Quickbooks records that go back to 1996 that show this.
“Originally, Graphics 71 had a separate bank account, but that account was closed several years ago when we changed banks. Stuart Newman, who died in March 2019, did not see a need to incur bank charges for Graphics 71 as it is simply an internal transfer.
“For the past several years, (my accountant) has been processing bills from Graphics 71, as with any other vendor. But the check is not cashed. Our bank will not accept a check payable to Graphics 71, so she destroys checks.
“(The accountant) makes an accounting entry recording the payment to Graphics 71 in a separate income account in our books, which is obviously subject to company income tax and is processed by the company’s accounting firm. The check and deposit offset to $0 in our books. There is no bank transaction. This is why there are no canceled checks to Graphics 71.”
