Feds investigate Systemax operations

SEC launches formal probe into Misco and Wstore owner following resignation of besmirched exec Fiorentino

The US federal government is formally investigating Misco and Wstore parent company Systemax, two months after top executive Gilbert Fiorentino left following allegations from an anonymous whistleblower.

Fiorentino, a board member who headed up online retailers CompUSA and TigerDirect, resigned last month. News of his ignominious departure had emerged the previous month. He faced the axe following an internal investigation into Systemax's Miami operations, which stemmed from mysterious allegations from a nameless source.

As part of his termination agreement, Fiorentino assented to hand over to his former employer various assets worth $11m (£6.9m), according to a Systemax filing yesterday with the US Securities and Exchange Commission (SEC).

The submission also reveals the SEC "has initiated a formal investigation into certain matters discovered by the company during its internal investigation".

"The company intends to co-operate fully with the SEC in its formal investigation and does not expect to comment further on developments related to this matter... except as required by law," adds the filing.