Wednesday, June 23, 2010

Former Merchandising Exec For Apparel Company Charged With Misappropriating $14 Million In Vendor Fraud/Kickback Scheme

Christopher L. Finazzo, 54, of Garden City, New York, has been charged with misappropriating at least $14 million from Aeropostale Inc., where he had been employed as Executive Vice President and Chief Merchandising Officer. According to prosecutors, Finazzo conspired with Douglas Dey, the owner of South Bay Apparel Inc., which was a supplier to Aeorpostale. Finazzo allegedly steered $350 million in business to South Bay Apparel and received $14 million in direct kickbacks from Dey. The two reportedly invested $13 million from the scheme in three real estate ventures the two controlled. The vendor kickback scheme spanned some 10 years, from 1996 until 2006. Finazzo was fired from Aeropostale in November 2006, according to reports. Research reveals that last March, Finazzo was promoted to Executive Vice Presidebnt of Merchandising for Corona, California-based Anchor Blue, a clothing retailer with 112 stores in Western US.

Read the story here, here and here.

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