A former executive of Chicago-based commercial flooring contractor Mr. David’s Flooring International LLC was charged with engaging in a $40,260 money laundering scheme to conceal alleged kickback payments to an account executive for a large flooring manufacturer in exchange for low pricing, federal prosecutors announced.
Michael Zmijewski, former President of Mr. David’s Flooring International LLC, authorized six checks totalling $40,260 to MGAB13 Consulting, a shell company Zmijewski suggested creating to Carter Brett, account executive for a flooring manufacturer, for the purpose of receiving the illegal kickback payments, according to the indictment by the Illinois federal court.
Michael Zmijewski via LinkedIn
Zmijewski authorized checks from 2013 to 2016 and a co-conspirator from a different company issued a kickback payment for MGAB13 in June 2018, the indictment alleges. The former executive, currently a real estate manager at MDL Holdings, could not be reached for comment.
The indictment alleges “Zmijewski knew MGAB13 did not perform any consulting services for Zmijewski or for Mr. David,’s.”
“Zmijewski knew the sole purpose of MGABl3 was to conceal and disguise the nature, Iocation, source, ownership, and control of the kickback payments paid, including those kickbacks paid by Mr. David’s, which were authorized by Zmijewski,” according to the indictment.
Zmijewski is the sixth individual, along with three companies, that have been charged as a result of the ongoing federal antitrust investigation. Mr David’s agreed to pay at least a $1.2 million fine in August for rigging bids and fixing prices for commercial flooring products and laundering money to conceal kickback payments from 2009 to at least June 2017.
“Kickbacks have no place in the American marketplace,” said Emmerson Buie, Jr. agent in charge of the FBI’s Chicago field office. “This indictment serves as a warning to anyone looking to profit illegally at the expense of consumers.”
The charges for money laundering conspiracy carry a maximum sentence of 20 years and a fine of $50,000.