The charges, filed in U.S. District Court in Manhattan, stem from Mr. Chessa's involvement in two separate schemes to defraud clients of Grey Global Group's Grey Worldwide, according to court papers.
Mr. Chessa is the seventh
In one scheme, Mr. Chessa and several co-conspirators, including Joseph Panaccione, a former Grey vice president and manager of graphic services, inflated invoices for work performed on behalf of Grey clients. The fraudulent invoices were sent though the U.S. mail. In the other scheme, according to court documents, Mr. Chessa paid Mr. Panaccione "kickbacks in cash and checks" worth almost $47,000. The money was paid to ensure that Mr. Chessa's company was on Grey's list of approved vendors and also to be awarded business.
Mr. Panaccione pleaded guilty Oct. 1 to two counts of conspiracy to commit mail fraud.