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Rite Aid VP’s $5.7 Million Kick-Back Scheme Lands Him in Hot Water
Harrisburg, PA – In a shocking turn of events, James W. Pilsner, a 60-year-old former Vice President of Rite Aid, has pleaded guilty to engaging in a massive $5.7 million vendor kick-back scheme.
Pilsner, who served as the Vice President for Advertising at Rite Aid, allegedly entered into a corrupt agreement with Larry Nuckols and Vance Taylor, the owners of Nuvision, Inc., an Atlanta-based company. The scheme, which spanned from 1995 to August 2017, involved Pilsner approving inflated and false invoices from Nuvision in exchange for kick-backs.
Between 2001 and August 2017, Rite Aid paid Nuvision approximately $45.3 million dollars. Pilsner allegedly received no less than $5,124,862 in kick-backs over that time period, with another $634,300 paid to other Rite Aid employees designated by Pilsner.
Pilsner also faces charges of income tax evasion for tax year 2013, after failing to report $411,500 in kick-back money, thereby avoiding approximately $157,648 in federal income taxes. He has agreed to pay $300,000 towards his tax restitution obligation for the period 2013-2017, with the balance to be paid at sentencing.
The investigation into Pilsner’s scheme was led by the Harrisburg offices of the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation. Assistant United States Attorney Kim Douglas Daniel is prosecuting the case.
Pilsner’s guilty plea marks a significant blow to the former Rite Aid executive, who now faces potential penalties including up to 20 years of imprisonment, a term of supervised release, and a fine for his role in the kick-back scheme.
The case serves as a stark reminder of the importance of accountability in corporate America and the devastating consequences of corporate greed.
Key Facts
- State: Pennsylvania
- Category: White Collar Crime|Fraud & Financial Crimes
- Source: DOJ Press Release â†â€â€
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