Former Systemax execs charged over $9m fraud, tax evasion

'Wrong side of the law'

The FBI charged Gilbert with one count of conspiracy to commit securities fraud and to impair and impede the lawful functions of the IRS. If he is found guilty he could serve up to five years in an orange jumpsuit.

The SEC already investigated the kickback claims against Gilbert and decided to prevent him from becoming director at a publicly traded company again. He had coughed $65,000 as a penalty.

The Carl Fiorentino kickback case was initially probed by the US Attorney Office for the Eastern district of New York, with the help of the FBI New York Field Office and the IRS CI team in Miami. It was due to be heard in New York but transferred to Florida, where he is based and was employed.

US Attorney Wifredo A Ferrer said the two brothers put their “financial gain and lavish lifestyle” ahead of corporate responsibilities.

“They accepted kickbacks, driving up the price of the consumer electronics and passing the price increase to customers. The Fiorentinos took advantage of their positions of trust.”

FBI assistant director-in-charge George Venizelos alleged this was “true shareholder shakedown ... today the defendants find themselves on the wrong side of the law”.

The charges, which the FBI pointed out are still just accusations, are being prosecuted by the US Attorneys in New York and Florida. ®