OGILVY TO PAY PARTIAL LEGAL FEES FOR INDICTED FORMER EMPLOYEES
Spokesman Characterizes Move as Typical Corporate Policy
http://www.adage.com/news.cms?newsId=39511 TWO FORMER OGILVY EXECS PLEAD NOT NOT GUILTY
Enter Pleas in White House Drug Office Advertising Case
TWO INDICTED IN WHITE HOUSE DRUG OFFICE CASE
One Current and One Former Ogilvy & Mather Executive Named
BACKGROUND: THE WHITE HOUSE DRUG OFFICE ADVERTISING CASE
The Stories From 2001 to the Present
Read the 14-page indictment .pdf
Mr. Early and Shona Seifert, who had been Ogilvy's executive group director and senior partner, were indicted on 11 counts of defrauding the government and overcharging the White House Office of National Drug Control Policy for work done as part of a $145 million account.
Ogilvy said Mr. Early had "decided to resign in order to devote his full energies to obtaining a full vindication in this matter."
Ms. Seifert is currently president of Omnicom Group's TBWA/Chiat/Day's office in New York.
The White House drug office hired Ogilvy in January 1999 to handle media buying for the account, which spent $145 million annually in advertisements.
In late 2000, a House Government Affairs subcommittee launched an investigation into Ogilvy's administration of the contract. Ogilvy later acknowledged problems with bills issued for work performed in 1999, saying its records showed "administration of some accounting aspects of its contract ... did not meet rigorous record-keeping requirements imposed on federal contractors."
In February 2002, Ogilvy agreed to pay $1.8 million in a settlement with the drug office.