An example of work for which the New York print-production house allegedly issued a false and fraudulent invoice is a 1999 magazine advertisement created by Grey for P&G's Cover Girl Smoothers featuring models Brandy Norwood, Niki Taylor, Yamila Diaz, Lonneke Engel and Faith Hill. Federal authorities allege the line items for various retouching services were inflated by a total of $5,000.
Color Wheel management allegedly used the excess funds to recoup the cost of tickets to the theater, sports and cultural events as well as goods and services provided for the personal benefit of Mr. Mosallem, another unnamed Grey employee described as a "co-conspirator" and other senior employees and executives at Grey along with their family members.
Authorities claim some of the money was also used to recoup charges for work Color Wheel performed on earlier jobs, frequently for different Grey clients, for which it had not been fully paid.
Messrs. Mosallem and Ergulec and others indicted have pleaded not guilty to bid-rigging charges. Grey is cooperating with the investigation. P&G had no comment.