A further nine tax and fraud charges have been levelled against Mitchell E Mosallem, the former president and director of graphic services at Grey Worldwide accused of swindling some of the agency’s clients.
The latest charges, added by a federal grand jury in Manhattan, comprise one count of conspiracy to defraud the Internal Revenue Service, five counts of falsifying tax entries and three counts of conspiracy connected with corrupt payments made to Mosallem between 1990 and 2001.
It is claimed that the defendant received cash, travel, clothing and transport by limousine from three graphic services suppliers, which in turn were added to Grey’s list of approved vendors and worked on contracts for the agency. He failed to put such payments on his tax returns.
Earlier this year, Mosallem was charged alongside graphics firm Color Wheel with conspiring to defraud Grey by faking invoices [WAMN: 20-May-02].
Bribery, tax-evasion and the rigging of bids in the advertising and printing industries are the subjects of an ongoing probe by federal competition authorities.
Data sourced from: AdAge.com; additional content by WARC staff