Augusto Alizo, Multi-Million-Dollar Kickback Scheme, California 2024

A Florida man has pleaded guilty to his role in a multi-million-dollar kickback scheme to defraud Williams Sonoma.

Augusto Alizo, of Weston, Florida, pleaded guilty in federal court to charges related to his role in the scheme, which diverted and stole more than $4 million in commercial real estate broker commission rebates that should have gone to Williams Sonoma, Inc.

According to the plea agreement, Alizo conspired with a Vice President at Williams Sonoma, Inc. and Kourosh Mirmehdi, Alizo's direct report at the global logistics company where they both worked, to divert and steal the broker commission rebates.

WSI is a home-goods retailer headquartered in San Francisco that operates brands such as Williams Sonoma, Pottery Barn, and West Elm. The global logistics company where Alizo worked helped clients secure commercial real estate, including large commercial warehouses.

As part of his plea agreement, Alizo admitted that he concealed from the global logistics company that co-defendant Mirmehdi was helping WSI obtain commercial warehouse space. Alizo also admitted that he and his co-defendants concealed from WSI and the global logistics company that he, Mirmehdi, and the conspiring Vice President at WSI pocketed real estate broker commissions rebates that should have gone to WSI.

The scheme involved real estate brokers negotiating with Mirmehdi to obtain broker commission rebates that were paid to REM Group, a shell company owned by the conspiring WSI Vice President, and then distributed to private bank accounts controlled by Alizo, Mirmehdi, and the conspiring WSI Vice President.

Alizo admitted that he acted with the intent to deceive and cheat both his employer and WSI to further the scheme and conspiracy to defraud so that he and his co-defendants could obtain broker commissions rebates that should have gone to WSI. Alizo admitted that he received approximately 25% of the broker commissions and rebates obtained as part of the conspiracy.

Alizo was indicted by a federal grand jury on April 11, 2023. He was charged with one count of wire fraud conspiracy, in violation of 18 U.S.C. § 1349; four counts of wire fraud, in violation of 18 U.S.C. § 1343; and one count of money laundering conspiracy, in violation of 18 U.S.C § 1956(h). Under the plea agreement, Alizo pleaded guilty to the wire fraud conspiracy.

Alizo is currently released on bond. His sentencing hearing is scheduled for August 27, 2024. The maximum statutory penalty is 20 years in prison for each of the wire fraud and money laundering conspiracy counts, as well as a $250,000 fine for the wire fraud conspiracy count and a $500,000 fine for the money laundering conspiracy count.

As part of his plea agreement, Alizo admitted that the conspirators obtained a total of $4,110,323.81 and that he personally obtained $965,526.51.

Source: https://www.justice.gov/usao-ndca/pr/florida-man-pleads-guilty-kickback-scheme-defraud-williams-sonoma