Brothers Owe $35M in Restitution in Computer Company Fraud

Two South Florida brothers who were once top computer supply company executives have been ordered to pay more than $35 million in restitution to their former firm because of massive fraud.

The Miami federal judge's order came Tuesday for Carl and Gilbert Fiorentino, who are both imprisoned after pleading guilty to fraud charges. They were former executives at Port Washington, New York-based Systemax Inc.

The brothers admitted in plea agreements to taking millions of dollars in kickbacks from a Taiwan-based company that sold Systemax computer parts, cables and equipment at inflated prices. The scam cost Systemax an estimated $27 million.

Prosecutor Jerrob Duffy says the money was spent on such things as waterfront mansions, exotic cars, yachts and fine furniture.

The Fiorentinos founded the TigerDirect company later bought by Systemax.

Copyright AP - Associated Press
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