The former chief merchandising officer at Aeropostale Inc., hallowed clothing retailer for middle school girls, was convicted on Thursday for fraud and conspiracy. Christopher Finazzo took more than $25 million in kickbacks from South Bay Apparel Inc., one of Aeropostale’s major clothing suppliers.
Finazzo was in cahoots with Douglas Dey, South Bay’s owner. Under the agreement, Finazzo purchased more than $350 million worth of T-shirts and fleeces from South Bay for Aeropostale, and in return he received about 50 percent of South Bay’s profits—which amounted to more than $25 million over the course of the deal.
Prosecutors accused Finazzo of hiding the scheme from Aeropostale, and keeping it from seeking out lower prices or better merchandise from another vendor.
“We have all heard the saying ‘money does not buy happiness,’ and today’s verdict is case in point for that maxim,” said U.S. attorney Loretta Lynch in a statement. “Christopher Finazzo had a great job that paid him millions of dollars, but this honest living was apparently not enough to satisfy his greed.”
Read more at Thomson Reuters.
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