|
A Third Former Home Depot Employee Pleads Guilty
to Vendor Kickback Scheme & Filing False Tax Returns
ATLANTA, GA—RONALD
K. JOHNSTON, 37, of Atlanta, Georgia, has pleaded guilty to one count
of conspiracy to commit wire fraud and two counts of filing a false
tax return, arising out of a scheme to defraud Home Depot.
United States
Attorney David E. Nahmias said, "This is the third former Home
Depot employee who has now admitted accepting bribes from the company's
foreign suppliers and then not reporting or paying taxes on that illegal
income. This type of conduct corrupts the honest operation of American
businesses, and those who pay, receive, or solicit such payoffs risk
federal prosecution."
"Kickback
schemes undermine the competitive process," said Deborah A. Garza,
Acting Assistant Attorney General in charge of the Department's Antitrust
Division. "Today's plea underscores the importance of holding
accountable individuals who participate in such conspiracies."
IRS Criminal
Investigation Special Agent In Charge Reginael D. McDaniel said, "The
prosecution of individuals who conceal their income from the IRS,
even if obtained from illegal activity, is a vital element in maintaining
public confidence in our tax system. We should not expect the honest
taxpayer to foot the bill for those who choose not to pay their fair
share."
According to
United States Attorney Nahmias and information presented in court:
Between 2005 and 2007, JOHNSTON, a former Merchant for Flooring, participated
in a conspiracy to defraud Home Depot by taking kickbacks from foreign
suppliers seeking to do business with Home Depot. JOHNSTON arranged
for Home Depot to purchase items for resale on less than the most
advantageous terms to the company. Another former Home Depot employee,
ANTHONY TESVICH, who pleaded guilty last June to similar offenses,
received millions of dollars in bribes from foreign suppliers and
passed on to JOHNSTON through kickbacks hundreds of thousands of dollars
and also made payments to a home improvement company for work on JOHNSTON'S
residence. In July 2008, another former Home Depot employee, JAMES
P. ROBINSON, also pleaded guilty to similar charges arising out of
his participation in this scheme to defraud Home Depot.
JOHNSTON also
pleaded guilty to filing a false tax return by underreporting his
income for tax years 2005 ($60,108 in unreported income); and 2006
($125,893 in unreported income).
JOHNSTON could
receive a maximum sentence of 20 years in prison on the conspiracy
to commit wire fraud charge, and a maximum sentence of 3 years in
prison on each tax charge. JOHNSTON also could be fined up to $250,000
on each count. In determining the actual sentence, the Court will
consider the United States Sentencing Guidelines, which are not binding
but provide appropriate sentencing ranges for most offenders. JOHNSTON
is scheduled to be sentenced on April 1, 2009, at 3:30 p.m., before
United States Judge Richard W. Story.
This case is
being investigated by the Internal Revenue Service-Criminal Investigation,
the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the
Federal Bureau of Investigation. Home Depot has cooperated in the
federal investigation.
This case is
being prosecuted by John R. Fitzpatrick and Barbara W. Cash, Trial
Attorneys for the United States Department of Justice Antitrust Division,
Atlanta Field Office, and Assistant United States Attorney Russell
Phillips, with assistance from Assistant United States Attorney Sally
Molloy.
For further information please contact David E. Nahmias (pronounced NAH-me-us), United States Attorney or Charysse L. Alexander, Executive Assistant United States Attorney, through Patrick Crosby, Public Affairs Officer, U.S. Attorney's Office, at (404) 581-6016. The Internet address for the HomePage for the U.S. Attorney's Office for the Northern District of Georgia is www.usdoj.gov/usao/gan.
Press Releases | Atlanta Home |
