Admen Accused: Indictments in Grey, Brouillard Scams

20 May 2002

Federal grand juries last week brought indictments against several individuals and companies in two separate scams involving ad agencies.

In one case, graphics supplier Color Wheel was charged alongside former ad executive Mitchell E Mosallem with conspiring to defraud Grey Worldwide (Mosallem’s former employer) in a scheme involving fake invoices running from 1991 through 2000.

Indictments connected with the same scam were also brought against Color Wheel owner Haluk E Ergulec, one of the firm’s salesmen Birj Deckmejian and a salesman at a different, undisclosed graphics supplier.

The defendants are also charged with rigging bids and allocating print production contracts connected with Grey’s work for Brown & Williamson Tobacco.

In a separate scandal, Lawrence Scaglione – a former purchasing agent at WPP-owned Brouillard Communications in New York – was indicted on no less than seventeen counts.

The 68-year-old Scaglione, who pleaded not guilty, stands accused of three counts of conspiracy, six counts of commercial bribery, six counts of mail fraud and two counts of witness tampering.

It is alleged that he received payments from salesmen of commercial printing suppliers in return for awarding them Brouillard contracts, and that he subsequently convinced the salesmen to deny the charges.

Data sourced from:; additional content by WARC staff