Former Aeropostale exec guilty in kickback conspiracy
NEW YORK — Christopher Finazzo, 57, a former EVP and CMO at Aeropostale, was found guilty of 14 counts of mail fraud, one count of wire fraud and one count of conspiracy. He faces up to 20 years in prison on each of the fraud convictions and up to five years for the conspiracy charge.
The jury took less than five hours to reach the verdict, which came after a three-week criminal trial in Brooklyn, N.Y.
All of the counts were related to an alleged multimillion dollar kickback plot. Prosecutors said Finazzo had entered into an illegal deal with Douglas Dey, controlling owner of South Bay Apparel, which was at the time a major clothing supplier for the company.
Under the arrangement, Finazzo purchased more than $350 million in T-shirt and fleece items from South Bay on behalf of the company, the prosecutors said. Aeropostale overpaid for the merchandise and Finazzo and his friend Dey shared the revenue, the government alleges.
In September, Dey, who was also charged, pled guilty to a conspiracy charge, which carries a penalty of up to five years in prison. He is awaiting sentencing.