8 indicted in Millercoors scheme

Exec, others accused of embezzling $7 million

A former Millercoors LLC vice president and seven others are being charged in connection with a scheme to embezzle at least $7 million from the nation’s secondlargest brewer — with some of the cash allegedly invested in Milwaukee-area businesses.

Dave Colletti, who oversaw marketing and promotions at MillerCoors, and the others were named in a federal grand jury indictment, according to a statement issued Wednesday by the U.S. attorney’s office.

The indictment says the fraud scheme involved false estimates and invoices that billed Chicagobased Millercoors for fake promotional and marketing events.

Colletti, 58, of Oconomowoc, was charged with wire fraud. He worked at Miller Brewing and Millercoors, formed by the 2008 merger of Miller Brewing and Coors Brewing, from 1982 until 2013. He was vice president of national accounts when he left the company.

Colletti’s Chicago attorney, Eugene Murphy, said he’s working to resolve the issues raised by the indictment, and other litigation tied to the case.

Murphy said that includes a pending civil lawsuit, filed in Milwaukee County Circuit Court by Millercoors against Colletti and others, and a federal lawsuit Colletti has pending against the company claiming his pension was improperly withheld. Murphy declined further comment on the indictment.

Also charged in the indictment was Andrew Vallozzi, 53, a Florida resident, who was Colletti’s partner in downtown Waukesha’s Clarke Hotel.

That boutique hotel and restaurant opened in 2008, but ran into financial trouble and in 2013 landed in foreclosure. It was sold last year to Sheboygan-based Harp & Eagle Ltd., which has since reopened its restaurant and pub.

Vallozzi also was president and chief executive officer of the now-defunct Milwaukee Iron arena football team.

The defendants used the embezzled money for items that included investments in a hotel and bar, and an arena football team, according to the indictment.

It didn’t specifically name the hotel or the team, and a spokeswoman for the U.S. attorney’s northern Illinois district office declined to comment.

However, a source familiar with the case confirmed that Clarke Hotel and the Milwaukee Iron were part of the investigation.

The others named in the indictment are Maryann Rozenberg, 57, of Dousman; Roderick Groetzinger, 61, of North Carolina; James Rittenberg, 72, of Chicago; Scott Darst, 68, of Las Vegas; Thomas Longhi, 57, of Venice, Fla.; and Francis Buonauro Jr., 72, of Windermere, Fla.

The indictment alleges that Colletti hired vendors to organize events and promotions designed to market beer made by Millercoors, which includes Miller Lite, Coors Light and Miller High Life among its brands.

According to the indictment, the seven other defendants controlled companies that claimed to provide services to Millercoors.

Those company names 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.

False billing alleged

The indictment says Colletti worked with the others to submit estimates and invoices that falsely billed MillerCoors 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, according to the U.S. attorney’s office.

The indictment alleges that Colletti oversaw the approval of a number of those false invoices, with Millercoors paying over $7 million to the defendants’ companies.

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 a forfeiture of at least $7 million.

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.

Millerscoors’ operations include a brewery and corporate offices in Milwaukee.

“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,” said a statement from Jon Stern, Millercoors director of media relations. “All along we’ve sought justice for the millions of dollars stolen from our company as these actions are intolerable and inexcusable.”