MillerCoors files lawsuit against Oconomowoc citizens, dozens of others
More than 30 accused of embezzlement

By Ryan BIllingham - Enterprise Staff

Sept. 11, 2014

WAUKESHA - MillerCoors filed a civil lawsuit in Milwaukee County Court last week accusing two Oconomowoc residents and 30 other defendants in a 13-year, $10 million embezzling scheme.

The lawsuit claims David and Pamela Colletti of Oconomowoc, along with Paul Edwards and various individuals and businesses worked in concert to bill MillerCoors using a variety of techniques to create phony invoices for goods and services.

Colletti, 55, is a former vice president of channel marketing for the Chicago-based company, and Paul Edwards was once a director of on-premise channel marketing.

The suit claims the Collettis and others created a shell companies in order to fraudulently bill MillerCoors through an internal budget Colletti controlled.

The multimillion-dollar budget was meant to pay for dozens of marketing employees promoting special events and advertising.

The suit is seeking an unspecified amount of damages and costs for claims of fraud, civil theft, unjust enrichment, racketeering and more. It seeks  unspecified damages and costs.

MillerCoors originally spotted a suspicious payment to Golden Logistics in Dousman. The company used an address identical to a former MillerCoors employee.

Auditors then began investigating other payments approved by Colletti.

Operating as DAC Management Company, Colletti, 55, was an investor in The Clarke Hotel in Waukesha. The property was ultimately foreclosed upon in January 2013.

The suit names Andrew Valozzi III as a defendant. Valozzi was an investor in the Milwaukee Iron, a failed arena football team. The suit alleges he and Colletti conspired to make three Waukesha companies bilk MillerCoors of $2 million from 2005 to 2010 through fake invoices.

No criminal charges have been filed as of Wednesday.