Former President of TigerDirect (and parent company Systemax, Inc.) Carl Fiorentino finds himself accused of mail fraud, wire fraud, and money laundering for redirecting $230 million to manufacturers and suppliers who paid him kickbacks or bribes. Prosecutors claim Fiorentino was responsible for the company’s purchasing decisions but rather than going with the low bidder, he made choices for his own self-interest, allowing him to purchase his $8 million home in Coral Gables, Florida.
Carl Fiorentino
According to an indictment filed June 6 and unsealed Tuesday, Fiorentino entered an illegal agreement in 2003 with the owner of a Taiwanese company ordering TigerDirect to purchase the Taiwanese company’s computer components in exchange for bribes and kickbacks totaling $6.5 million over the course of the conspiracy. Between 2003 and 2007, the indictment claims he received another $570,000 from a California based firm supplying memory modules and upgrades. Prosecutors claim Fiorentino concealed the deception by filing false conflict of interest forms with Systemax.
In a press release issued by Systemax, the company states, “The criminal indictment relates solely to the action of Fiorentino, has no impact on the Company or its management and follows the Company’s 2011 internal whistleblower investigation that resulted in the termination of, among others, Carl Fiorentino’s employment with Systemax.”
This case has interesting parallels with the prosecution of Fry’s Electronics’ Vice President, as detailed in this December, 2011 press release.
Perhaps now, TigerDirect really will be able to offer those low, low, slashed prices it promises in its advertising.
Not really surprised. Found out the hardway the whole company is corrupt, they ripped me off on a 3 item order shipping all 3 separately quadrupling shipping charges and on top of that they knowlingly provided bogus tracking numbers for other items since they never shipped what I ordered. Tigredirect in its entirely is nothing more than a gigantic ponzi scheme that needs to be shut down pronto!
I ordered a new Lenova SSD laptop , a HDMI cable and a Hauppauge HVR-1955 USB TV tuner.from Tigerdirect.ca . When checking my order I found that that the laptop was back ordered a month so I cancelled it. When the the HDMI cable arrived a receipt was inside for $112 tax on the laptop that was cancelled.
The Hauppage tv tuner arrived two days later and the packaged contained an obsolete Hauppauge
HVR-1950 though Tigerdirect.ca webpage states HVR-1955. I am trying to replace a defective 4 year old HVR-1950. Clearly Bait and Switch. Previously I have ordered two computers in the past from Tigerdirect
so this latest treatment by this firm indicates a lack of integrity.