Former Systemax exec barred as officer

Gilberto Fiorentino allegedly netted supplier kickbacks of more than $400,000, according to SEC

A former Systemax executive has been barred from serving as an officer or director of any publicly held company after he "brazenly" stole from the pan-global VAR and betrayed shareholder trust.

The US Securities and Exchange Commission (SEC) alleges that Gilberto Fiorentino netted kickbacks of more than $400,000 (£246,000) from suppliers while serving as chief executive of Systemax's Technology Products Group in Miami.

He also stole several hundred thousand dollars' worth of company merchandise, the SEC said in a statement yesterday.

Fiorentino left the firm in April 2011 following anonymous allegations from a whistleblower.

After the SEC began investigating his conduct, Fiorentino agreed to resign from all his positions with Systemax, surrender stock and stock options valued at approximately $9.1m, and repay his 2010 annual bonus of $480,000.

Fiorentino has now agreed to settle the SEC's charges by consenting to the directorship ban and stumping up an additional $65,000 penalty.

The misconduct occurred between January 2006 and December 2010, according to the SEC complaint. One example saw Fiorentino demand and receive $50,000 to $10,000 monthly from a company that supplied material for use in Systemax's retail and mail order operations, the SEC said.

"Fiorentino brazenly stole from Systemax and betrayed the trust of its shareholders," said Eric Bustillo, director of the SEC's Miami regional office. "His actions demonstrate that he is unfit to serve as an officer or director of a public company."

According to the Miami Herald, Fiorentino did not admit wrongdoing in the settlement but said in a statement: "This matter was, in fact, settled with the company over a year and a half ago. I am pleased to get this behind me and move on to the next chapter in my life."