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Fiorentino brothers sentenced in Systemax bribery case

Former Systemax executive Carl Fiorentino, got 6.5 years

Former Systemax executive Carl Fiorentino, got 6.5 years in prison in a multimillion-dollar bribery case. His brother Gilbert got 5 years. Carl Fiorentino was photographed outside federal court in Central Islip on July 8, 2013. Photo Credit: James Carbone

Two brothers who admitted to orchestrating an $11 million bribery scheme while running the Florida operations of Port Washington electronics retailer Systemax Inc. were sentenced to multiyear prison terms.

Carl Fiorentino, 57, who admitted to taking $9.5 million in kickbacks, was sentenced Tuesday by a federal judge in Miami to 6 1/2 years. Gilbert Fiorentino, 54, who took $600,000, got 5 years.

The judge has scheduled a hearing for April 3 to determine how much the Fiorentinos must pay in restitution to Systemax.

"Yesterday's sentences should serve as a stern reminder that those who commit corporate fraud will be held accountable," U.S. Attorney Loretta Lynch said Wednesday.

The brothers founded TigerDirect, a computer retailer that they sold in 1995 to Systemax. But they continued to run the Miami-based company until 2011, when a whistle-blower sparked an internal investigation.

Carl was indicted in 2013 on charges of cutting side deals with vendors and collecting kickbacks in exchange for buying from certain suppliers.

Gilbert cut a deal with prosecutors and quietly helped them build their case. It's unclear whether Gilbert turned on his brother.

After months of working with prosecutors, Gilbert was publicly charged in November. He and his brother pleaded guilty on Dec. 2. Carl faced up to 20 years under the terms of his plea deal. Gilbert faced 5 years.

Last month, Systemax disclosed in a regulatory filing that the company's internal controls and bookkeeping were the subject of an ongoing grand jury probe by the U.S. attorney's office in Miami.

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