Molson Canada Accuses Ex-Managers of $9.1M Fraud Scheme

BREAKING: Molson Canada has just accused former managers of orchestrating a staggering $9.1 million fraud scheme involving fake vendors and shell companies. The allegations, detailed in documents filed in Ontario Superior Court on Wednesday, pinpoint former sales director Frank Ivankovic as the orchestrator of this elaborate deception.

This urgent development has significant implications for Molson Canada, a subsidiary of Molson Coors Beverage Co., as it seeks to recover lost funds and hold those responsible accountable. The lawsuit claims Ivankovic exploited his authority to approve fraudulent invoices from shell companies, which allegedly funneled money back to him and his wife, Kelly O’Brien-Ivankovic.

According to the filings, the deceptive practice has drained nearly $9.1 million from Molson Canada’s accounts since 2021. The lawsuit highlights the involvement of two shell companies, Letz Go and a numbered entity identified as 466 Ontario, allegedly controlled by Larry Isaacs, president of the Firkin Hospitality Group, and his wife, Ellen Bacher.

“Acting through Letz Go and 466 Ontario, Bacher and Isaacs conspired with Ivankovic and received a share of the proceeds of the fraud,” the lawsuit states.

The accusations suggest that Ivankovic enlisted former employees to further his scheme. Notably, ex-account manager Michael Conforti is said to have issued fake purchase orders linked to the fraudulent companies. Ivankovic reportedly received over $3.6 million from Letz Go alone, with each payment representing half of the fraudulent invoices submitted to Molson Canada.

Initially, suspicions arose when Molson discovered an email from Ivankovic’s bank regarding deposits exceeding $276,000 from the implicated companies to a personal account he shared with his wife. The investigation unveiled an Excel spreadsheet tracking their illicit transactions.

Further complicating matters, the lawsuit alleges that Ivankovic and Conforti deleted relevant data to obstruct the investigation. The couple reportedly used text messages to coordinate payments, with Ivankovic referring to Isaacs’ wife as “boss” in their communications.

Despite the serious nature of the allegations, neither Ivankovic nor his wife have commented on the lawsuit. However, Isaacs and Bacher’s lawyer stated they reject the accusations, claiming they are “without merit” and intend to respond in court.

This situation is evolving rapidly, and Molson Canada is pursuing claims of fraud, conspiracy, breach of fiduciary duty, and unjust enrichment. The company is calling for millions in damages as it seeks to recover the funds lost through this alleged scheme.

The outcome of this case could have far-reaching impacts on corporate governance and fraud prevention measures within the beverage industry, emphasizing the importance of vigilance against internal misconduct.

As the legal proceedings unfold, all eyes will be on Molson Canada and its efforts to reclaim its losses and restore integrity within its operations. Stay tuned for further updates on this developing story.