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New Jersey CFO Charged in $48M Kickback Scheme
Oakland, CA – In a shocking case of corporate greed, 66-year-old Domenick Nardone, Chief Financial Officer of two New Jersey companies, has been charged with participating in a multi-million-dollar kickback scheme to defraud Williams Sonoma, Inc. (WSI), announced United States Attorney Ismail J. Ramsey and IRS Criminal Investigation (CI) Acting Special Agent in Charge Michael Mosley of the Oakland Field Office.
According to a superseding indictment returned by a federal grand jury on March 12, 2024, Nardone, of Port St. Lucie, Florida, conspired with others to pay millions of dollars in kickbacks to Eric Marsiglia, a former WSI executive and co-defendant in the case, to ensure Marsiglia would direct additional business to two New Jersey companies controlled in part by Nardone. Nardone was arrested in Florida on March 29, 2024, and made an appearance in federal court there shortly thereafter. He was released on a $250,000 bond.
“Williams Sonoma is a Bay Area institution, and the defendants charged in this case are accused of taking advantage of their positions to defraud that venerable company out of millions of dollars over several years,” said United States Attorney Ismail J. Ramsey. “As National Crime Victims’ Rights Week comes to an end, I am proud to say this Office is committed to vindicating the rights of all victims, including companies like Williams Sonoma that call our district home.”
The superseding indictment alleges that Marsiglia, who was WSI’s Vice President of Engineering, Projects, Planning, Facilities, and Real Estate, solicited and received millions of dollars from the two New Jersey companies, one a forklift company and the other a warehouse racking and logistics company, in part owned and controlled by Nardone and Michael Podhurst, a Vice President at the two companies who was also charged for his role in the offense and pleaded guilty in June 2023. In exchange, Marsiglia allegedly directed contracts for WSI’s business to those companies.
The superseding indictment also alleges that, from 2018 to 2020, WSI awarded companies connected to Nardone and/or Podhurst more than $48 million in contracts for work done at warehouses around the country, and that Marsiglia, Nardone, and Podhurst arranged for more than $12 million in kickbacks to be paid to Marsiglia’s shell company, REM Group LLC, which Marsiglia allegedly set up for the sole purpose of receiving and hiding kickback payments.
The superseding indictment charges Nardone with conspiracy, wire fraud, money laundering, and related charges, while Marsiglia and Podhurst face additional charges, including conspiracy, wire fraud, and money laundering. The case is being investigated by the IRS Criminal Investigation and is being prosecuted by the United States Attorney’s Office for the Northern District of California.
“Greed can easily overtake one’s ability to be content. Mr. Nardone abused his position as the Chief Financial Officer and conspired with others to secure favorable contracts only to end up in court,” said IRS Criminal Investigation Acting Special Agent in Charge Michael Mosley. “IRS Criminal Investigation will continue to unravel the truth and bring these selfish acts to light. We value our partnership with the U.S. Attorney’s Office Northern District of California as we press forward with charging those who entangled themselves in this multimillion-dollar kickback scheme.”
WSI is a home-goods retailer that operates brands Williams Sonoma, Pottery Barn, West Elm, and others. The company has suffered significant financial losses as a result of the alleged kickback scheme, with the superseding indictment alleging that over $48 million in contracts were awarded to companies connected to Nardone and/or Podhurst, and that over $12 million in kickbacks were paid to Marsiglia’s shell company.
In total, the superseding indictment alleges that the defendants diverted and misappropriated approximately $60 million in contracts and kickback payments from WSI over several years.
Key Facts
- State: California
- Agency: DOJ USAO
- Category: Fraud & Financial Crimes
- Source: Official Source ↗
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