MillerCoors exec charged with $7m fraud

US federal prosecutors have accused a former MillerCoors vice president of involvement in a $7 million embezzlement scheme to defraud the brewer by charging it for marketing events that never took place.

The money was used to pay for international golf trips and to invest in a hotel, prosecutors said (Photo: Wiki)

David Colletti used his position as vice president in charge of beer marketing and sales to funnel cash out of the company by claiming the money was being used to pay for promotional activities, prosecutors said.

The fictitious events included food and beer pairings, trainings, and promotions held at casinos, hotels, and flea markets across the country.

Colletti billed MillerCoors at vastly inflated prices for the non-existent events and shared the money with several conspirators, who used it to pay for guns, international golf trips and hunting holidays, as well as investing in a hotel and an arena football team, according to the indictment announced yesterday.

Colletti, who worked for MillerCoors for 21 years before leaving in 2013, has been charged along with seven others on 20 counts of fraud, with each count carrying a maximum 20-year prison sentence and a fine of $250,000. Prosecutors are also seeking at least $7m in damages.

MillerCoors sued Colletti and others last year in Milwaukee Circuit Court over the same allegations.

The brewing giant said that it is “satisfied” with the work done by the US attorney’s office. “All along we’ve sought justice for the millions of dollars stolen from our company as these actions are intolerable and inexcusable”, a spokesperson said.

Colletti’s attorney, Gene Murphy, said he and his client are working with MillerCoors and the federal government to resolve the criminal and civil cases, according to the Chicago Tribune.