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Printing Cos. Subpoenaed in Mosallem Case

NEW YORK—At least four printing houses that have worked for Grey Global Group in the past year have been subpoenaed by federal investigators, in connection with an alleged scheme to defraud advertisers, sources said. The Department of Justice is looking into whether Grey head of print production Mitch Mosallem undercharged vendors for print work while over-billing clients for the same jobs, according to the criminal complaint filed in district court on March 15. Sources specifically named vendors such as Master Eagle, Quality House of Graphics, Technical Print Group and Horan Imaging (now known as Shawk Imaging), all New York. John Howard, general counsel for Vertis, the Baltimore-based parent of Master Eagle and its direct owner, TC Advertising, confirmed that Master Eagle has been subpoenaed. Both the president of Quality House of Graphics, John Aslanian, and the president of Shawk Imaging, Frank Maguire, were on vacation and not available for comment.

P&G Consolidates Pampers at Saatchi

NEW YORK—Procter & Gamble has consolidated global ad duties on its Pampers brand at Saatchi & Saatchi. Billings are estimated at $80 million. Previously, D’Arcy Masius Benton & Bowles handled the brand in the U.S., Japan and Latin America, and Saatchi handled it in Europe and other parts of the world. As of July 1, Saatchi will absorb D’Arcy’s assignments, with billings estimated at $40-50 million. The consolidation stems from Cincinnati-based P&G’s drive to align global brands at global shops. Sources indicated that D’Arcy, which continues to handle Crest, Charmin, Always, Folgers and Swiffer, would likely pick up other P&G brands in the wake of the shift. D’Arcy and a P&G representative declined comment.

The End of Ayer

CHICAGO—N.W. Ayer, one of the nation’s oldest agencies, though in recent years a shadow of its once formidable self, is being folded into The Kaplan Thaler Group by parent Bcom3, the Chicago-based holding company said today. Ayer’s clients, which will be assumed by Kaplan Thaler in New York, include Continental Airlines, KitchenAid, Charming Shoppes and Villeroy & Boch. Bcom3, which is also the parent of Leo Burnett and D’Arcy Masius Benton & Bowles, last month agreed to be acquired by Publicis Groupe in a deal estimated at $3 billion.

Account Activity

Apple & Eve, a Port Washington, N.Y., juice company with distribution on the East Coast and in parts of the Midwest, is searching for an ad agency to handle creative and media duties, an Apple & Eve executive confirmed. Billings are estimated at $1-2 million. New York consultancy ADvice & ADvisors is managing the review. Apple & Eve hopes to select an agency by the end of June. … Strawberry Frog, a boutique agency in Amsterdam, Netherlands, was selected for Cap Gemini Ernst & Young’s global creative account, following a review, according to Scott Goodson, agency creative partner. D’Arcy Masius Benton & Bowles in New York previously handled creative for Cap Gemini, which is based in Paris.