New York

Brothers Guilty of Fraud at Systemax Sent to Prison

Two South Florida brothers who were once top executives with the Systemax computer company have been sent to prison after pleading guilty to federal charges for accepting millions of dollars in bribes and kickbacks from companies doing business with Systemax.

U.S. District Judge Jose E. Martinez on Tuesday handed Carl Fiorentino a prison term of over six years, while Gilbert Fiorentino got five years behind bars. Records show their scam cost Systemax at least $27 million in higher supply costs and that Carl Fiorentino alone received at least $9.5 million in kickbacks from a Taiwanese supplier.

Systemax is based in Port Washington, New York, and has substantial operations in South Florida. Its brands include TigerDirect, Circuit City and CompUSA. The Fiorentino brothers founded the company that became TigerDirect.

Copyright AP - Associated Press
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