Tile Shop Investigation Affirms Allegations
Minneapolis, MN, Jan. 28, 2014 -- The brother-in-law of Tile Shop Holdings CEO Robert Rucker has been fired after allegations that he had an improper relationship with vendors.
Other Archived Articles
The brother-in-law, Fumitake Nishi, is the owner of a Chinese export-promotion firm called Beijing Pingxiu.
According to a press release, Nishi made $1.1 million in illicit fees from Chinese manufacturers who sell to Tile Shop. He was fired for multiple vioations of the company's business ethics policy.
The Minneapolis law firm Dorsey & Whitney and a major accounting firm, conducted the investigation.
Violations also included the hiding of an acquisition of a Chinese vendor that sold millions of dollars worth of product to Tile Shop between 2011 and 2013, the company said.
The initial allegations came to light after a report by short seller Gotham City Research.