US Ad Agency Print Fraud: Supplier Boss Pleads Guilty

07 May 2002

Martin Schwartz, owner of three print production companies, has pleaded guilty to a number of conspiracy charges and now awaits sentencing, according the US Attorney’s Office for the Southern District of New York. Schwartz faces up to ten years in jail.

Following a federal investigation that has already involved a number of New York ad shops including Grey Worldwide and Bates Worldwide, Schwartz admitted to selling false invoices to a number of his customers and illegally billing $12 million (€13.06m; £8.17m) during the period January 1992 to June 1999.

The scam also involved Ivan Glick, a salesman of commercial printing services who, with Schwartz, defrauded Brouillard Communications and Deltakos Advertising. Glick also admitted to charges of tax-evasion.

However, many within the ad industry believe the Schwartz/Glick case is only the tip of the iceberg. One of New York's largest print production houses, Color Wheel, is currently under investigation by the antitrust division of the Justice Department; and the company’s chief financial officer Donald LaPorte (54) committed suicide earlier this year.

In what is believed to be a related case, Mitchell Mosallem, the former executive vp and director of print services at Grey Worldwide, has also been indicted for mail fraud and falsely billing Grey clients.

Data sourced from:; additional content by WARC staff