Case content:  In May of 2015, seven executive level employees of MillerCoors were indicted in an embezzlement and fraud

  

Case content: 

In May of 2015, seven executive level employees of MillerCoors were indicted in an embezzlement and fraud scheme. From 2008 to 2013, the vice president of on-premise national accounts along with 6 other employees and several vendors devised a scheme to obtain money from vendors by falsely billing the vendors company for specific events or promotions that did not occur as billed or at inflated costs.

To do that, third-party vendors were recruited to prepare false estimates for marketing services, which the MillerCoors Vice President would approve for payment. In return, the vendors would provide the MillerCoors executives with a cut of the fraud proceeds in various forms including cash, funds transfers, payments on investments and debts, international golf trips, hunting trips, and collectible firearms. In total, the MillerCoors employees were involved with at least 200 false estimates that prompted MillerCoors to pay at least 15 different vendors controlled by the others indicted in the case, $8.6 million in fraudulent payments.

Reference: Trotter, Greg (May 4, 2016). Former MillerCoors exec pleads guilty to embezelling $8.6 million (Links to an external site.), Chicago Tribune, Retrieved 5/16/19 from https://www.chicagotribune.com/business/ct-former-millercoors-exec-pleads-guilty-0505-biz-20160504-story.html (Links to an external site.)

Image Source: Xanor (6 August 2011). Miller Genuine Draft (beer), Xanor [CC0], Wikimedia Commons

*Requirements: 

Identify the root cause and define the underlying issues that caused this problem. Discuss strategies that MillerCoors could have used to prevent this scenario, including ways to strengthen their purchasing, vendor payment and ethical code of conduct policies. Best practices from other companies may be used to support your ideas. This portion of your paper should be double spaced, at least 6 pages long and include appropriate documentation of all research sources.


  

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