COLOR WHEEL FOUNDER SENTENCED IN PRINT-AD SCANDAL

Haluk Ergulec Gets 37 Months; Grey to Get $1.1 Million in Restitution

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NEW YORK (AdAge.com) -- The founder and former head of Manhattan graphics services firm the Color Wheel was sentenced yesterday and ordered to pay $1.5 million in restitution, the Justice Department said.

Haluk Ergulec pleaded guilty last November to several charges of antitrust, tax and fraud violations. He was sentenced to 37 months in prison and ordered to pay $1.5 million in restitution to firms that suffered financially as a result of his actions.

Ongoing investigation
The charges were brought against

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Mr. Ergulec and his company in May 2002 by the Justice Department's antitrust division (additional charges were filed in November). The government's investigation of Mr. Ergulec and Color Wheel is part of an ongoing probe into bid-rigging, bribery, fraud and tax-related activities in the advertising and marketing communications industry.

The $1.5 million in restitution for Mr. Ergulec's crimes will be divided as follows: $1.1 million to Grey Global Group, whose advertising company Grey Worldwide contracted with Color Wheel on behalf of its clients as well as for its corporate assignments; $200,000 to Impact Communications, a New York advertising agency; $100,000 to WPP Group's Brouillard Communications, another New York agency; and $100,000 to Viacom, owner of TDI Winston Network.

Calls to Mr. Ergulec's lawyer were not returned at press time.

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