A former Williams-Sonoma Inc. government on Tuesday pleaded responsible to 3 counts of fraud for accepting $16.3 million in kickbacks from distributors that provided gear for firm warehouses in New Jersey and stealing actual property dealer commissions.
Eric Marsiglia, 52, admitted that over a four-year interval ending in about 2022 he conspired to defraud Williams-Sonoma (NYSE: WSM), the place he served as vp of engineering, tasks, planning, services and actual property, the Division of Justice introduced. Marsiglia oversaw the choice and leasing of warehouse area all through the US in addition to the acquisition of metal racking, forklifts and associated logistics providers.
In line with court docket paperwork, beginning in 2018, Marsiglia accepted cash from co-conspirators in change for steering Williams-Sonoma enterprise to 3 New Jersey firms that provided forklifts, racking methods and equipment for warehouses. Marsiglia arrange a shell firm, REM Group, to obtain and conceal the kickbacks. In complete, he obtained over $12.2 million in warehouse kickbacks, which he hid from the retailer.
From 2020 by 2022, Marsiglia additionally conspired to divert actual property dealer commissions related to Williams-Sonoma warehouses that saved kitchenware and residential furnishings. He directed these funds to accounts held by REM Group after which distributed parts of these proceeds to himself and co-conspirators. Marsiglia hid from Williams-Sonoma that he was diverting dealer fee funds to accounts he managed, reasonably than to the agency that was entitled to them, prosecutors mentioned. The scheme resulted within the theft of greater than $4.1 million in dealer commissions.
(Why It Issues: Williams-Sonoma is a publicly traded firm. Cargo theft by outsiders is massive information within the logistics sector, however stopping inside jobs can be necessary to forestall firms from losses.)
Marsiglia pleaded responsible to cash laundering for participating in wire fraud to hide and disguise the diversion of the dealer funds.
A federal grand jury indicted Marsiglia on April 11, 2023, together with three different people on fees arising from the kickback and dealer fee diversion schemes. One other co-conspirator was later charged in a superseding indictment in 2024. All defendants charged have pleaded responsible to federal offenses.
Marsiglia is scheduled to be sentenced on Nov. 3 within the U.S. District Courtroom for the Northern District of California. He faces a most statutory penalty of 20 years in jail and a $250,000 high quality for every of the 2 wire fraud conspiracy counts and a most of 20 years in jail and a $500,000 high quality for conspiracy to commit cash laundering, topic to sentencing tips.
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