Feeds

SEC bars ex-Systemax veep from director role in fraud deal

Gilbert Fiorentino settles with fine of $65,000

Bridging the IT gap between rising business demands and ageing tools

The SEC has barred former Systemax veep Gilbert Fiorentino from being a director of a PLC again after finding he "fraudulently" pocketed hundreds of thousands of dollars in compensation over five years.

The disgraced exec, who had been CEO of the reseller's Technology Products Group, was put on administrative leave in April 2011 amid whistleblower allegations relating to the Florida operation.

An investigation was launched by the SEC last June and Fiorentino resigned, handing back stock and stock options valued at $9.1m, and repaying his annual bonus of $480,000 for 2010.

The SEC alleged last night the exec had banked $400,000 in additional compensation from firms that did business with Systemax between January 2006 and December 2010.

The federal agency also claimed he stole $200,000 worth of company merchandise used to market the reseller's products.

Fiorentino had organised the extra payments when dealing directly with "external service providers, manufacturer representatives, and others that conducted business with Systemax," said the SEC.

The SEC also claimed the fallen exec had bagged $5,000 to $10,000 a month from a firm that supplied materials to Systemax's retail and mail order operations, as just one example of why actiuon was taken againsst him.

As Fiorentino was one of the firm's highest paid execs, he was duty-bound under SEC regulations to disclose all compensation, perks and other personal benefits he received on a yearly basis.

He apparently failed to disclose these payments – meaning the amounts reported by Systemax to shareholders were understated.

Fiorentino has agreed to settle the charges, paying a $65,000 penalty, consenting to a "permanent bar" from serving as an officer or director of any publicly held firm, and agreeing to a permanent injunction from further violations of the anti-fraud and other provisions of the federal securities laws.

"Fiorentio brazenly stole from Systemax and betrayed the trust of its shareholders," said Eric I Bustillo, director of the SEC's Miami regional office.

"His actions demonstrate that he is unfit to serve as an officer or director of a public company," Bustillo added. ®

Application security programs and practises

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
Amazon Reveals One Weird Trick: A Loss On Almost $20bn In Sales
Investors really hate it: Share price plunge as growth SLOWS in key AWS division
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
prev story

Whitepapers

Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Top 8 considerations to enable and simplify mobility
In this whitepaper learn how to successfully add mobile capabilities simply and cost effectively.
Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Boost IT visibility and business value
How building a great service catalog relieves pressure points and demonstrates the value of IT service management.