Mitchell Mosallem Must Also Pay $247,000 Fine

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NEW YORK ( -- A federal court judge today sentenced former Grey Global Group executive Mitchell Mosallem to 70 months in prison.

In April of this year, Mr. Mosallem pleaded guilty to 11 antitrust, fraud and tax charges brought by the Department of Justice in connection with an ongoing investigaton of printing-related bid-rigging in the advertising industry.

Mr. Mosallem, former executive vice president and director of graphic services at Grey, oversaw the advertising agency's 70-person graphic services department for nearly a decade. He was arrested in March 2002 by federal authorities on charges of conspiracy to commit mail fraud.

$247,000 restitution
In addition to serving time in jail, Mr. Mosallem must pay $247,000 in restitution to Grey Global Group. No other fine was imposed. Mr. Mosallem owes the Internal Revenue Service approximately $750,000.

The sentencing guidelines range from 63 to 78 months. In moving to the high end of the guidelines to sentence Mr. Mosallem, U.S. Judge Thomas P. Griesa said today, "You contributed to others who, in my view, would never would have violated the law at all, now being convicted of felonies. That is tragic."

FBI and IRS agents arrested Mr. Mosallem last night at his Midtown Manhattan apartment, said Paul Bergman, his attorney, because they were concerned he would flee the country.

At this morning's hearing, it was also disclosed that FBI and IRS agents also executed a search on his apartment in conjunction with his arrest, and found $31,000 in cash. Mr. Mosallem is currently being held without bail and will meet next week before Judge Greisa for a bail hearing.

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