Mitchell E. Mosallem, a former executive vice president and director of graphic services at the Grey Global Group agency in New York, was released on $1.5 million bail.
A complaint filed by the U.S. Justice Department's antitrust division alleges that from at least as early as 1991 until 2000, Mr. Mosallem agreed with a senior executive of an unnamed graphics supplier to defraud Grey clients by padding invoices.
The antitrust division, Federal Bureau of Investigation and Internal Revenue Service's criminal investigation unit are involved in investigating Mr. Mosallem.
Meanwhile, an IRS spokeswoman confirmed authorities are investigating The Color Wheel, a New York graphics supplier to Grey and others, on an unspecified matter.
Color Wheel hasn't returned calls. Grey has said it's cooperating with federal officials in their investigation.