Port Washington, N.Y. - Systemax reports that it has placed Gilbert Fiorentino, CEO of its Technology Products Group, on administrative leave and plans to terminate him under terms of his employment contract.
According to a company statement, the action by Systemax followed the conclusion of its independent investigation of anonymous whistleblower allegations concerning the company's Miami, Florida operations. The investigation was initially disclosed in Systemax's Form 10-K filed with the SEC on March 17, 2011.
The company was not specific in its statement on the reasons for its action. Systemax did report that the investigation, which was conducted by its Audit Committee with the assistance of independent counsel, determined that the issues giving rise to the allegations did not have a material impact on Systemax's previously reported financial results and were limited to the Miami operations.
Systemax expects normal business operations to continue for its Technology Products Group businesses, which include TigerDirect, Circuit City and CompUSA.
Systemax has named Robert Leeds to serve as interim CEO, technology products, reporting to Systemax chairman/CEO Richard Leeds. Robert Leeds was the founding CEO of Systemax's Technology Products business and currently serves as vice chairman of the board.
In a prepared statement, chairman/CEO Richard Leeds said, "We appreciate that our internal processes facilitated the efforts of the individual who brought these matters to our attention, and we appreciate the diligent work done by our Audit Committee and its independent counsel to thoroughly evaluate the complaints. Systemax's technology products businesses benefit from the leadership of a strong team and the hard work of many great employees throughout the organization. We thank them for their continued support and dedication and look forward to a promising future."