Systemax Executive Ousted Following Investigation
Robert Leeds has been named interim CEO of the Technology Products Group and reports to Systemax chairman and CEO Richard Leeds. Robert Leeds was the founding CEO of Systemax's Technology Products business and currently services as vice chairman of the board, according to Systemax.
Fiorentino's termination comes as a result of the company's independent investigation of anonymous whistleblower allegations regarding the company's Miami-based operations, according to Systemax. The company did not detail the allegations or findings of the investigation.
According to Newsday, Fiorentino's termination comes after Systemax negotiated a settlement with the Florida attorney general and federal prosecutors regarding complaints that Systemax failed to honor certain consumer rebates.
Last October, Florida Attorney General Bill McCollum reached a settlement with Systemax and its Tiger Direct and OnRebate subsidiaries for failing to pay advertised rebates to consumers.
Consumer complaints reported that the rebate program was very difficult to navigate and often led to consumers giving up their rights to rebates, according to the attorney general's office. The settlement, in which Systemax admitted no wrongdoing, required Systemax to process rebates in the time advertised and reimburse the attorney general's office $200,000 in legal fees and costs and to donate $100,000 to the Florida Alliance of Boys and Girls Clubs to purchase computer equipment.
"We appreciate that our internal processes facilitated the efforts of the individual who brought these matters to our attention, and we appreciate the diligent work done by our Audit Committee and its independent counsel to thoroughly evaluate the complaints," Richard Leeds said in t a statement.
For the fiscal year ended Dec. 31., Systemax's Technology Products business accounted for $3.34 billion of the company's $3.59 billion total sales. The numbers compare to $2.97 billion out of $3.17 billion for the same period in 2009.
In 2009, Systemax agreed to purchase certain assets of Circuit City a year after buying the CompUSA brand to complement its Tiger Direct online retail presence.