Smyrna man pleads guilty to Home Depot fraud


The Atlanta Journal-Constitution
Published on: 07/11/08

Former Smyrna resident and Home Depot purchasing manager James P. Robinson pleaded guilty Friday in federal court to three felony counts stemming from his role in a kickback scheme at the Atlanta-based home improvement giant.

According to documents filed in federal court, Robinson gave lucrative flooring contracts to hand-picked overseas vendors in exchange for cash and gifts, nicknamed "milkshakes and french fries" by the mastermind of the plot, Anthony Tesvich.

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Tesvich, 42, pleaded guilty June 30. Both men will have a sentencing trial Oct. 14.

They face maximum sentences of five to 20 years for conspiracy to commit mail fraud and tax evasion. Their plea deals and cooperation with officials might get them some leniency from the sentencing judge. Tesvich might have to pay $4.2 million in back taxes on proceeds from the scheme that he didn't report to the IRS.

Robinson, 43, now lives in Carolina Beach, N.C. He agreed to hand over to federal authorities two Gallatin, Tenn., houses, a 2006 Infiniti SUV, a 2004 Cadillac Escalade and $146,000 in a bank account. These were the gifts and cash that federal prosecutors say he received as kickbacks from vendors. One vendor's volume of business to Home Depot increased by $5.2 million, according to the plea agreement. The agreement also says Robinson has agreed to pay restitution to Home Depot. He may owe back taxes on up to $765,879 in unreported income from the kickbacks.

Robinson's guilty plea was entered with federal Judge Richard Story in Atlanta.

Robinson and three other Home Depot employees were fired last summer after being suspected of taking bribes. Tesvich was fired in 2005.

Home Depot changed its gift policy last summer from a $50 limit to zero-tolerance. The company has said it's assisting with the investigation, which has included four federal agencies: the FBI, the Internal Revenue Service's criminal investigation unit, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Justice Department.

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