Plea negotiations are ongoing in the case of a former MillerCoors executive’s “scheme to defraud his employer through invoices for fake marketing events,” according to Law360. Former MillerCoors VP David Colletti pled guilty to recruiting vendors to help him scam MillerCoors. According to Law360, “in May, Colletti, who ran the company’s marketing, admitted to coaching vendors…to submit inflated or falsified invoices for marketing events to MillerCoors, signing off on them, and then collecting a portion of what the beer company paid out.” The scam allowed vendors to allegedly bring in as much as $3.5million. The take away? Be sure proper approvals are in place for expenses, which includes confirmation that the agencies are reputable and the events or items being paid for actually occurred or exist.  

Posted in alcohol beverage law, beer, Lawsuits | Tagged Illinois, MillerCoors, third party | Comments Off

Today the TTB announced acceptance of a $450,000 offer in compromise from MillerCoors for trade practice violations. The allegations are that MillerCoors’ Miller Fortune had a buy back program where MillerCoors guaranteed participating wholesalers that it would buy back product that went unsold or expired if, in return, the wholesaler fulfilled certain standards. According to the TTB press release, that included “distribution, speed to market, and forecasting/ordering compliance.” Guaranteeing repurchase of product was an alleged consignment sale violation. As noted in the press release, “under the Consignment Sales provisions of the FAA Act, it is unlawful for an industry member to sell or for any trade buyer to purchase alcohol beverage products with the privilege of return.” Returns of product may be permissible, as outlined in 27 CFR Chapter 11 and in the 2012-4 TTB Advisory, for purposes such as defective product, shipment error, change in law preventing sale of the product, etc. See the press release here.