Mega PR agency Fleishman Hillard admitted that executives in its Los Angeles offices overbilled municipal accounts for the city. After first denying any wrongdoing, Fleishman announced it will pay $4.5 million and that former executives has sent L.A. "improper and indefensible" bills, according to AdAge. The scandal, and the agency's reaction to it, are reminiscent of the recent Ogilvy & Mather case of overbilling its federal anti-drug campaign account, a matter that led to several senior executives being found guilty in criminal court.

Fleishman said that executives involved in the scandal are no longer with the firm. One executive is already under indictment.

AdAge reports that prosecutors have hinted that more are to follow.