The Feds have now charged ex-Systemax senior exec Gilbert Fiorentino and his brother and former colleague Carl, with allegedly perpetrating fraud to the tune of millions of dollars as well as evading tax.
The criminal case was last night confirmed by the US Attorneys’ Office for the southern district of Florida and the eastern district of New York, the Inland Revenue Services’ Criminal Investigation team and the FBI.
Gilbert Fiorentino was formerly CEO of the Technology Products biz at Systemax and Carl was the veep of Systemax sub-brand TigerDirect until they exited the business in 2011 following whistleblower allegations.
The duo allegedly liaised with third parties to bag unlawful kickbacks in exchange for directing business to specific suppliers, receiving $9m in cash and other undocumented payments for steering $230m worth of orders to an Asian component maker, the FBI claimed.
Carl Fiorentino is suspected of pocketing more than $3m from a TigerDirect supplier that was used to pay for a waterfront residence in Florida, as well as millions of dollars of luxury furnishings including art and a high-end security system.
He is charged with one count of conspiracy to commit mail and wire fraud, multiple counts of mail and wire fraud, money laundering, and one count of tax evasion as he sought to hide his illicit gains. He faces a maximum 25 years in the slammer if found guilty.
Gilbert is alleged to have received hundreds of thousands of dollars in cash payments, including deliveries made to a parking lot at the Miami offices of TigerDirect when he was in charge of that subsidiary before his brother got the job. He also allegedly received gold coins valued at $150,000, and took delivery of luxury furniture and other goods for dodgy deals, it is claimed.
The FBI further claimed Gilbert misappropriated company merchandise, which included paying a third party $100,000 worth of electronics in return for the upkeep of his yacht.