FORMER WPP EXEC PLEADS GUILTY IN PRINT SCAM

Lawrence Scaglione Admits Witness Tampering, Fraud

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NEW YORK (AdAge.com) -- A former advertising agency graphics services purchasing agent is the latest to plead guilty to charges brought by the government in its ongoing federal antitrust investigation of bid-rigging, bribery, fraud and tax-related offenses in the marketing communications industry.

Lawrence Scaglione on Wednesday

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pleaded guilty to 18 charges of conspiracy, commercial bribery, mail fraud, witness tampering and tax evasion charges. Sentencing is scheduled for Jan. 17, 2003.

$325,000
According to a statement from U.S. Attorney James Comey, the charges were made in connection with Mr. Scaglione's receipt of more than $325,000 in kickbacks from salesmen for the advertising agency's outside vendors.

Mr. Scaglione worked at WPP Group's Brouillard Communications.

Mr. Scaglione was indicted May 14 by a federal grand jury on 17 counts of bribery, conspiracy and mail fraud; the 18th count, tax evasion, was contained in a superceding information filed by the government Wednesday, when Mr. pleaded guilty.

Brouillard Communications
From 1991 to 2001, Mr. Scaglione, who as the purchasing agent for Brouillard Communications was responsible for selecting suppliers of printing and related services, and salesmen for various printing vendors agreed that Mr. Scaglione would receive financial kickbacks in exchange for awarding business to the printing vendors' salesmen or representatives, the Justice Department said.

Mr. Scaglione admitted to receiving kickbacks from three different salesmen, and that he attempted to persuade two of the salesmen who paid him kickbacks to lie to government investigators if questioned about their involvement with Mr. Scaglione, the government said.

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