Federally indicted: Former VP of MillerCoors, 7 others accused in scheme to defraud company of $7M
CHICAGO (WITI) — David Colletti, the former vice president of MillerCoors and seven other individuals have been federally indicted -- accused in a scheme to defraud the company of at least $7 million. From international golf trips to helping finance a Milwaukee indoor football team, investigators say they lived it up.
58-year-old Colletti was charged in a 20-count indictment Tuesday, May 5th -- along with seven co-defendants.
Authorities allege they submitted false estimates and invoices that billed for fictitious promotional and marketing events.
Colletti has been charged with mail and wire fraud, along with the following co-defendants:
All will be arraigned at a later date.
The federal indictment alleges Colletti, as vice president of MillerCoors, oversaw the marketing, promotion and sale of beer for the company, which hired third-party vendors to organize and hold events and promotions designed to market the company’s beer.
MillerCoors
According to the indictment, Groetzinger, Vallozzi, Rittenberg, Darst, Longhi, Buonauro and Rozenberg controlled entities which claimed to provide third-party vendor services to the company during the course of the alleged scheme. The entities included Beverage Industry Marketing Services, Rave Media, Events Marketing Network LLC, AVA Advertising, Inc., AVA Marketing and Communications, LLC, Food and Beverage Network, Inc., Prime Promotions, Inc., P&D Marketing, Inc., Longhi Golf Operations, F&B Marketing and Golden Logistics.
The indictment alleges that during Colletti’s tenure at the company, he worked with Groetzinger, Vallozzi, Rittenberg, Darst, Longhi, Buonauro, and Rozenberg to submit false estimates and invoices in the name of entities which falsely billed the company for fictitious promotional events and for events at inflated prices. The estimates and invoices misrepresented the date, location, cost and type of events that were supposedly being held to market the company’s products. The fictitious events included supposed food and beer pairings, trainings and promotions for certain customer accounts, held at casinos, hotels and flea markets, and a $34,000 fictional promotional golf tournament.
The indictment alleges that Colletti oversaw the approval of a number of these false invoices for payment and the company paid in excess of $7 million to the defendants’ entities. Subsequently, some of the defendants arranged for Colletti to receive a portion of the payments. According to the indictment, the defendants used the victim company’s money, for among other things, defendants’ personal expenses, collectible firearms, international golf trips, hunting trips, investments in a hotel and bar, and an arena football team.
The indictment seeks forfeiture of at least $7 million.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois, and Robert J. Holley, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
Each count of mail or wire fraud carries a maximum penalty of 20 years in prison and a $250,000 fine, or an alternate fine of twice the loss or twice the gain, whichever is greater, and restitution is mandatory. If convicted, the court must impose a reasonable sentence under federal sentencing statutes and the advisory United States Sentencing Guidelines.
MillerCoors Director of Media Relations Jonathan Stern issued this statement to FOX6 News:
“MillerCoors is satisfied that the U.S. Attorney’s office completed its investigation and today filed charges against Dave Colletti and seven other co-conspirators. All along we’ve sought justice for the millions of dollars stolen from our company as these actions are intolerable and inexcusable.”
Former Vallozzi home
FOX6 News stopped by Maryann Rozenberg's home on Wednesday. No one answered the door at her home in Dousman.
Mark Spoerk said he doesn't know Andrew Vallozi, but there were signs he lived in a newly-purchased home in the Town of Ottawa. Spoerk says it appears Vallozi left quickly. The home was foreclosed upon, and Spoerk found a pile of burnt legal documents on the property when he moved in.
Authorities say it was Vallozi who may have used stolen funds to finance his now defunct Milwaukee Iron indoor football team.