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Molson Canada has accused former managers of embezzling millions of dollars in a complex fraud scheme that allegedly involved fictitious salespeople, shell companies, the president of a major pub chain and a pair of married couples.
In documents filed Wednesday in Ontario Superior Court, the brewing giant claims former Molson Canada sales director Frank Ivankovich oversaw a “complex scheme to defraud the company of many millions of dollars” that later involved two subordinates.
According to the lawsuit, first reported by the Globe and Mail, Ivankovic “falsely took advantage of his authority within the company” to approve fraudulent invoices from a pair of shell companies that in turn funneled secret payments back to him and his wife, Kelly O'Brien-Ivankovic.
The accounts, some of which were labeled “event planning,” have drained nearly $9.1 million from Molson Canada's coffers since 2021, the company, a subsidiary of Chicago-based Molson Coors Beverage Co., said in court papers.
It also alleges that two shell companies – Letz Go and a numbered company referred to in court documents as 466 Ontario – are controlled by the president of pub chain Firkin Hospitality Group, Larry Isaacs, and his wife, Ellen Bacher.
“Operating through Letz Go and 466 Ontario, Bacher and Isaacs conspired with Ivankovic and received a share of the proceeds of the fraud,” the statement of claim states.
None of the accusations were proven in court.
A lawyer representing Isaacs and his wife said they deny the charges.
“My clients’ position is that the allegations brought against them by Molson Coors are unfounded and they intend to address these allegations in court,” Niklas Holmberg said in an email.
Firkin, a pub franchise with 20 locations in the Toronto area, according to its website, did not respond to questions about Isaacs on Thursday.
Resigned due to internal investigation
Neither Ivankovic, who left Molson in October amid an internal investigation, according to court documents, nor his wife could be reached for comment.
The lawsuit says Ivankovic recruited two former employees in recent years. At least one of them, former account manager Michael Conforti, issued false purchase orders associated with two companies, the report alleged.
The scheme followed a pattern in which they received a fixed portion of any payment, Molson said.
“For example, Ivankovic received $3,655,779 in 63 payments from Letz Go, each of which represented 50 percent of the amount that Letz Go fraudulently invoiced Molson Canada,” the lawsuit states.
The company alleges that Ivankovic's wife had signatory authority on a checking account jointly owned by a Mississauga, Ont., couple through which they embezzled funds. A chiropractor with “undisclosed consulting” experience, O'Brien-Ivankovic also registered a company called KO Consulting, which acted as “a conduit for the misappropriation of funds by Ivankovic and O'Brien,” the suit states.
The alleged scheme involved text messages and personal meetings between Ivankovic and Firkin's Isaacs, which revolved around payments, with both referring to Isaacs' wife as “the boss”:
“The boss says he hasn't arrived yet”; “Got it – mail or give it back?”; “Get acquainted. I always like to be carried away”; “Love it – hang out tomorrow and make another appointment when someone lands!”
Relevant data deleted: plaintiff
The plaintiff also alleges that Ivankovic and Conforti intentionally deleted or blocked access to data relevant to the investigation.
That something might be amiss first came to Molson's attention when the company discovered an email from Ivankovic's bank asking for the source of more than $276,000 in deposits from Letz Go and 466 Ontario into a personal account he held with his wife.
On December 28, Ivankovic texted his accountant asking for help with “bullet points” to respond to. “The accountant helped Ivankovic respond to the bank and then told Ivankovic to ‘send the bank,’” the lawsuit states.
Molson discovered an Excel spreadsheet in his email that tracked his “fraudulent transactions” with Letz Go and 466 Ontario, the plaintiff alleges.
Ivankovic and his wife have received more than $4,279,000 in misappropriated Molson funds from the two companies since 2021, according to the documents.
The charges include fraud, conspiracy, breach of fiduciary duty and unjust enrichment.
Molson Canada is seeking millions of dollars in damages.
