News Corporation’s European publishing head, Andrew Langhoff, has been forced to resign following allegations of circulation fraud carried out at the Wall Street Journal.

Investigations carried out by the guardian found that the paper had been secretly channelling money via second parties in the territory to covertly purchase thousands of copies of its own title.

In a further blow to the authority of the title it is suggested that at least one company was persuaded to co-operate with the illicit circulation scam by the publication of Journal articles promoting its activities.

The scheme saw discounted editions of the paper flogged for as little as 1c as part of a wider initiative thought to account for as much as 41% of the European edition’s daily sales – 31,000 copies.

Though regarded as legal by the Audit Bureau of Circulation the slipping into editorial support has been adjudged to have overstepped the line.

Langhoff served as European MD of Dow Jones & Co, the Journal’s parent company and itself owned by News Corporation.