Gilbert and Carl Fiorentino, two brothers from Coral Gables, Florida, were charged in federal court this week with operating a scheme to acquire $9 million in kickbacks and other benefits to conceal their illicit profits from the IRS during their tenure as senior executives at Systemax Inc. and its TigerDirect Inc. subsidiary. The brothers were charged with receiving millions of dollars of kickbacks from suppliers, which they used to buy luxury homes, furniture, and yacht equipment.
Allegedly, the brothers completed false conflict of interest questionnaires for the two companies. The charges also state that Carl Fiorentino completed a fraudulent tax return, underreporting his taxable income by $4 million. Specifically, Carl was charged with one count of conspiracy to commit mail and wire fraud and one count of tax evasion. He faces a maximum sentence of 25 years imprisonment. Gilbert was charged with one count of conspiracy to commit securities fraud and to impede the lawful functions of the IRS. He has a maximum sentence of 20 years imprisonment.
“Gilbert and Carl Fiorentino put their financial gain and lavish lifestyle ahead of their responsibilities as corporate officers and directors,” Wifredo Ferrer, U.S. Attorney for the Southern District of Florida, said in a news release. “They accepted kickbacks, driving up the price of the consumer electronics and passing the price increase to customers.”
If you or someone you know has lost money as a result of an investment or Ponzi scheme, please contact Richard Frankowski at 888-741-7503 to discuss your potential legal remedies or complete the contact form.