Feds Say Kickbacks Got Flooring Products in HD

Atlanta, GA, March 24, 2008--The federal government believes a former Home Depot employee received perhaps millions of dollars from overseas flooring suppliers in a kickback scheme.

According to the Atlanta Journal Constitution newspaper, U.S. Attorney David Nahmias filed a civil suit in Atlanta that describes how Anthony Tesvich, a former store manager who left Home Depot in 2005, linked flooring suppliers from China, Taiwan, India, Turkey and Venezuela with Ronald K. Johnston, a tile buyer, and James P. Robinson, a rug buyer.

Kickback money was allegedly used to buy a 2006 Infiniti SUV, pay off a 2004 Cadillac Escalade, and finance $98,000 in home high end home improvements for Robinson and Johnston. Tesvich allegedly made millions as the middleman.

While no criminal charges have been filed, court records say a criminal investigation is pending, the newspaper said.

Prosecutors say that after Tesvich was fired in 2005 that he set up U.S. companies to represent seven foreign flooring manufacturers. Money from his companies was allegedly used to pay for Robinson's cars and Johnston's home improvements as payment for millions of dollars in flooring orders.

It's not clear if the flooring suppliers knew about the alleged payoffs by Tesvich.

Prosecutors also say that Venezuelan tile maker Megatrade Corp. sent more than $400,000 to Robinson in exchange for millions of dollars in tile purchases. He allegedly used the funds for house purchases.