College Admissions Bribery Scandal Has Bourbon Connection

Marci Palatella, owner of Bardstown's Preservation Distillery.

Yesterday, the U.S. Attorney’s Office in Massachusetts released a list of 50 individuals charged in a nationwide college admissions bribery scheme. One of them has a tie to Kentucky’s bourbon industry. She is Marci Palatella, founder and owner of Preservation Distillery in Bardstown, Kentucky. She is charged with felony conspiracy to commit mail fraud and honest services mail fraud. 

According to the indictment, Palatella paid approximately $500,000 to secure her son’s admission to USC.

Marci Palatella is married to Lou Palatella, who played guard for the San Francisco 49ers (1955-1958). After football, he became a liquor distributor in Northern California. They also own Campeón Tequila. Their liquor company, which is run by Marci Palatella, is called Allied Lomar Inc. 

Allied Lomar is better known in the industry for suing other liquor companies than they are for any of their own products. They got into it with Diageo over use of the Stitzel-Weller name, and with Garrison Brothers about the name Cowboy Bourbon. 

In 2015, the Palatellas bought the Bluegrass Expo and Convention Center, adjacent to the US-31E exit of the Bluegrass Parkway, and installed a small distillery. They joined the Kentucky Distillers' Association and started to give public tours last year.

4/16/19: Palatella has pleaded not guilty to charges of money laundering conspiracy and conspiracy to commit mail and wire fraud, and honest services mail and wire fraud.