Systemax Comments on Federal Criminal Charges Against Carl Fiorentino
PORT WASHINGTON, N.Y., June 18, 2013 /PRNewswire/ -- Systemax Inc. (NYSE: SYX) today acknowledged the federal criminal indictment brought against Carl Fiorentino, a former executive of the Company's North American Technology Products Group, by the Office of the United States Attorney for the Eastern District of New York. The criminal indictment charges Fiorentino with mail fraud, wire fraud, money laundering and conspiracy in connection with a scheme to defraud the company. According to the indictment, Fiorentino personally took over $7 million in commercial bribes and kickbacks in return for steering over $230 million in business to the Taiwanese and California companies that paid the bribes and kickbacks. 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. The internal investigation was conducted by the Company's independent Audit Committee of the Board of Directors, with the assistance of independent counsel.
The Company has no further comment at this time on this ongoing criminal matter.
About Systemax Inc.
Systemax Inc. (http://www.systemax.com), a Fortune 1000 company, sells personal computers, computer components and supplies, consumer electronics and industrial products through a system of branded e-Commerce websites, retail stores, relationship marketers and direct mail catalogs in North America and Europe. The primary brands are TigerDirect, Global Industrial, MISCO and Inmac Wstore.
This press release contains forward-looking statements about the Company's performance. These statements are based on management's estimates, assumptions and projections and are not guarantees of future performance. The Company assumes no obligation to update these statements. Actual results may differ materially from results expressed or implied in these statements as the result of risks, uncertainties and other factors including, but not limited to: (a) unanticipated variations in sales volume, (b) economic conditions and exchange rates, (c) actions by competitors, (d) the continuation of key vendor relationships, (e) the ability to maintain satisfactory loan agreements with lenders, ('9 risks associated with the delivery of merchandise to customers utilizing common carriers, (g) the operation of the Company's management information systems, and (h) unanticipated legal and administrative proceedings. Please refer to "Risk Factors" and the Forward Looking Statements sections contained in the Company's Form 10-K for a more detailed explanation of the inherent limitations in such forward-looking statements.
SOURCE Systemax Inc.