Molson Canada has made serious allegations against former executives, claiming they orchestrated a complex fraud scheme involving fake vendors, shell companies, the president of a prominent pub chain, and two married couples. According to court documents filed in Ontario Superior Court, the brewing company accused former sales director Frank Ivankovic of leading a scheme to defraud them of millions of dollars. Ivankovic allegedly used his position to approve fake invoices from shell companies, which then funneled secret payments back to him and his wife, Kelly O’Brien-Ivankovic.
The fraudulent invoices, some disguised as “event planning” expenses, have siphoned nearly $9.1 million from Molson Canada’s finances since 2021, as per the court filings. The lawsuit also implicates two shell companies, Letz Go and a numbered entity referred to as 466 Ontario, alleging they are controlled by Larry Isaacs and Ellen Bacher, the president and spouse of Firkin Hospitality Group, respectively. The claim asserts that Isaacs and Bacher collaborated with Ivankovic to benefit from the fraudulent scheme.
While these allegations have not been proven in court, a lawyer representing Isaacs and Bacher dismissed the claims, stating they intend to address the accusations legally. Molson reported that Ivankovic resigned during an internal inquiry in October, and efforts to reach him and his wife for comments were unsuccessful. The lawsuit alleges that Ivankovic involved two former employees in the scheme, with ex-account manager Michael Conforti issuing fake purchase orders connected to the shell companies in exchange for a portion of the illicit payments.
Molson claims that Ivankovic’s wife had access to a joint chequing account used to embezzle funds, and she also established a consulting entity, KO Consulting, to facilitate the misappropriation of funds. The lawsuit details a series of text messages and meetings between Ivankovic and Isaacs, with references to Isaacs’ wife as “boss.” It further accuses Ivankovic and Conforti of deliberately deleting or blocking relevant investigation data.
The fraud came to light when Molson discovered an email from Ivankovic’s bank inquiring about large deposits from the shell companies to his personal account. Subsequent investigations revealed incriminating evidence, including spreadsheets tracking the fraudulent transactions. The lawsuit alleges that the Ivankovic couple received over $4.2 million in misappropriated funds since 2021. Molson Canada is pursuing significant damages for charges including fraud, conspiracy, breach of fiduciary duty, and unjust enrichment.