Former Home Depot employee guilty of tax evasion

A former Home Depot employee pleaded guilty to tax evasion in a $2.5 million scheme to defraud the company. Anthony M. Tesvich, 42, of Atlanta pleaded guilty to one count of conspiracy to commit wire fraud and three counts of tax evasion. According to U.S. Attorney David Nahmias and information presented in court: From October 2002 through October 2007, Tesvich participated in a conspiracy to defraud Home Depot by taking kickbacks from vendors seeking to do business with Home Depot, paying kickbacks to fellow employees to further that scheme while he worked for Home Depot and continuing to pay kickbacks to his former colleagues when he left Home Depot to further the interests of those vendors. He took the payoffs from foreign suppliers/vendors to insure those vendors' products were chosen for inclusion in Home Depot stores throughout the country.

After Tesvich left the company, he gave substantial cash payments - which he called "french fries" and "milk shakes"- to co-conspirator employees at Home Depot. One co-conspirator also received a luxury SUV from Tesvich. According to the plea agreement, this scheme involved payoffs totaling more than $2.5 million.

Tesvich also pleaded guilty to evading federal taxes on his corrupt income for tax years 2003 ($212,937 in unpaid taxes); 2004 ($821,981in unpaid taxes); and 2005 ($386,997 in unpaid taxes).

He could receive a maximum sentence of 20 years in prison on the conspiracy to commit wire fraud charge, and a maximum sentence of 15 years in prison on the tax evasion charges. Fines could be up to $250,000 on each count. He is scheduled to be sentenced on Sept. 2 before U.S. Judge Richard Story in Atlanta.

"This defendant has now admitted to taking millions of dollars in secret payoffs from Home Depot's vendors and not reporting or paying taxes on that corrupt income," Nahmias said.

IRS Criminal Investigation Special Agent In Charge Reginael D. McDaniel said, "A criminal tax investigation is often a key component in the successful prosecution of a corporate fraud case because it targets the individuals who benefit financially from the scheme"

Anyone with information on such corporate kickbacks and fraud is asked to call the FBI at 404-679-9000.

This case is being investigated by the IRS-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, Trial Attorney for the U.S. Department of Justice Antitrust Division, Atlanta Field Office; Assistant U.S. Attorney Russell Phillips, and Assistant U.S. Attorney Sally Molloy.

- www.northfulton.com

Sphere: Related Content