Ex-Grey Print Chief to Fight Federal Charges

Mitch Mosallem, the former head of print production at Grey, is due in court April 22 for a preliminary hearing of evidence or, possibly, an indictment against him.

Mosallem, who could be indicted before that date, is charged with conspi racy to commit mail fraud. The charge stems from an investigation that began in January 2001 by the U.S. Department of Justice’s antitrust division. The complaint also refers to unidentified Grey employees and four unnamed print production firms.

Mosallem turned himself in March 21 and was released the same day on $1.5 million bail, sources said.

Paul B. Bergman, a Manhattan attorney in private practice, is representing Mosallem. He said Mosallem “intends to fight these charges.”

Filed March 15, the complaint alleges that Mosallem “authorized certain graphics suppliers to add to the monies owed charges for goods and services that the graphics suppliers had provided for the personal benefit of Mosallem or the personal benefit of other senior Grey employees or members of their families.”

Grey clients mentioned in the complaint as possible victims are Procter & Gamble, Brown & Williamson Tobacco Corp. and Joseph E. Seagram & Sons.

A Grey representative said the agency is cooperating with the investigation. Sources said Grey fired Mosallem in December after bills from print production house The Color Wheel, a Grey vendor, came under scrutiny.