Feeds

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

Gilbert Fiorentino settles with fine of $65,000

Build a business case: developing custom apps

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. ®

5 things you didn’t know about cloud backup

More from The Register

next story
Kate Bush: Don't make me HAVE CONTACT with your iPHONE
Can't face sea of wobbling fondle implements. What happened to lighters, eh?
Assange™: Hey world, I'M STILL HERE, ignore that Snowden guy
Press conference: ME ME ME ME ME ME ME (cont'd pg 94)
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Caught red-handed: UK cops, PCSOs, specials behaving badly… on social media
No Mr Fuzz, don't ask a crime victim to be your pal on Facebook
Ballmer leaves Microsoft board to spend more time with his b-balls
From Clippy to Clippers: Hi, I see you're running an NBA team now ...
Online tat bazaar eBay coughs to YET ANOTHER outage
Web-based flea market struck dumb by size and scale of fail
Amazon takes swipe at PayPal, Square with card reader for mobes
Etailer plans to undercut rivals with low transaction fee offer
Call of Duty daddy considers launching own movie studio
Activision Blizzard might like quality control of a CoD film
US regulators OK sale of IBM's x86 server biz to Lenovo
Now all that remains is for gov't offices to ban the boxes
prev story

Whitepapers

5 things you didn’t know about cloud backup
IT departments are embracing cloud backup, but there’s a lot you need to know before choosing a service provider. Learn all the critical things you need to know.
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.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Rethinking backup and recovery in the modern data center
Combining intelligence, operational analytics, and automation to enable efficient, data-driven IT organizations using the HP ABR approach.
Next gen security for virtualised datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.