Molson Canada has made serious allegations against former executives for embezzling millions of dollars through a sophisticated fraudulent scheme that reportedly involved fictitious vendors, shell corporations, a prominent pub chain’s president, and two married couples.
According to court documents filed by the brewing company in Ontario Superior Court, ex-Molson Canada sales director Frank Ivankovic orchestrated “a sophisticated plan to swindle the company out of millions of dollars,” which later implicated two of his subordinates. The lawsuit claims that Ivankovic misused his position to approve fake invoices from shell companies, funneling undisclosed payments back to him and his wife, Kelly O’Brien-Ivankovic.
The company states that these invoices, some disguised as “event planning” expenses, have siphoned nearly $9.1 million from Molson Canada’s accounts since 2021. Furthermore, the legal action alleges that the two shell entities, Letz Go and a numbered company identified as 466 Ontario, are under the control of Larry Isaacs and Ellen Bacher, president of Firkin Hospitality Group, a pub chain.
The lawsuit contends that Isaacs and Bacher colluded with Ivankovic to receive a portion of the fraud proceeds through Letz Go and 466 Ontario. However, none of these accusations have been substantiated in court.
A legal representative for Isaacs and Bacher refuted the claims, asserting that the allegations lacked merit and that they planned to contest them in court. Firkin, a franchise with 20 establishments in Toronto, did not respond to inquiries about Isaacs.
Ivankovic, who reportedly resigned from Molson amidst an internal inquiry, and his spouse could not be reached for comment. The lawsuit indicates that Ivankovic enlisted two former employees in the fraudulent activities, with one of them, ex-account manager Michael Conforti, allegedly issuing bogus purchase orders connected to the shell companies.
The alleged scheme involved a profit-sharing arrangement, with Ivankovic purportedly receiving significant sums from Letz Go. The lawsuit also mentions Ivankovic’s wife’s involvement in managing embezzled funds through a joint account.
The accusations extend to the deliberate deletion or obstruction of relevant data by Ivankovic and Conforti, implying an attempt to cover their tracks. Molson’s suspicions were initially aroused when an email was discovered in Ivankovic’s account, prompting further investigation into the suspicious transactions.
The lawsuit seeks significant damages from the defendants, citing various legal violations including fraud, conspiracy, breach of fiduciary duty, and unjust enrichment.