CHICAGO -- The inside man in a scheme that bilked MillerCoors Co. out of more than $8.6 million pleaded guilty to wire fraud on Wednesday and agreed to cooperate in the ongoing prosecution of seven co-defendants.
David Colletti, 59, who oversaw MillerCoors' marketing and promotions for national on-premise accounts, pled guilty in U.S. District Court in Chicago as part of a plea deal that calls for prosecutors to recommend he serve 65 months in prison, according to a report in the Milwaukee Journal Sentinel.
Federal prosecutors agreed to recommend that he serve 66% of the minimum guideline recommendation provided that the "government determines that (Colletti) has continued to provide full and truthful cooperation," the 20-page plea agreement states, according to the newspaper report.
Colletti, of Oconomowoc, Wis., will not be sentenced until the conclusion of his cooperation with prosecutors, which could include testimony against some or all of his co-defendants, the plea deal states, noting that if he fails to fully cooperate the deal will be voided.
In addition, Colletti agreed to a judgment of $8.6 million against him. He also agreed to forfeit two vehicles to the government.
Gene Murphy, Colletti's attorney, said that if other defendants are convicted, they also likely will be held liable for the judgment.
According to the plea deal, the newspaper said, Colletti acknowledged that he "devised a scheme" to create bogus invoices that were submitted to MillerCoors "for specific events or promotions that did not occur as billed or at inflated costs."
"In total, Colletti submitted and caused to be submitted at least 200 false estimates and invoices to the victim company," the plea deal states, according to the report.
The plea agreement lawsuit does not settle a pending $10 million lawsuit filed by MillerCoors against Colletti and about a dozen others in 2014. That lawsuit is pending in Milwaukee County.
Jonathan Stern, spokesman for MillerCoors, told the newspaper Colletti's guilty plea is "a step closer to justice being served in this embezzlement case."
Colletti worked for Miller Coors and Miller Brewing Co. from 1982 until 2013. He was indicted along with seven other defendants—marketers, advertising agents and event planners—in May 2015. The scheme to defraud the company began in 2003, according to the indictment.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.