FORMER GREY WORLDWIDE EXECUTIVE INDICTED

Mitch Mosallem, Color Wheel Charged With Bid-Rigging

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NEW YORK (AdAge.com) -- A Manhattan federal grand jury today handed down several indictments related to its ongoing print production investigation.

Former Grey Worldwide advertising executive Mitchell E. Mosallem and graphics supplier The Color Wheel were charged with conspiring to rig bids and allocate contracts for the supply of print production services purchased by Grey on behalf of one of its clients from late 1994 until 2001.

Also charged in the indictment are Haluk E. Ergulec, owner of the Color Wheel; Birj Deckmejian, a salesman at Color Wheel; and John Ghianni of Fort Lee, N.J., a salesman for an another unindicted and un-named graphic supply company.

The indictment also

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charged the defendants with conspiring to defraud certain Grey clients in a phony billing scheme from 1991 until July 2000.

Conspiracy
According to the indictment, the conspiracy included rigging bids and allocating contracts awarded by Grey to graphic vendors for work performed on behalf of client Brown & Williamson Tobacco Corp.

Today's charges stem from an ongoing federal antitrust investigation of bid rigging, bribery, fraud, and tax-related offenses in the advertising and printing and graphics industries.

The bid-rigging charge carries a maximum penalty of three years' imprisonment and a $350,000 fine for individuals and a $10 million fine for corporations, while the fraud charges carry a five-year prison term and a $250,000 fine for individuals and a $500,000 fine for corporations.

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