Matthew Fazelpoor//June 14, 2023//
Williams-Sonoma Inc. is the world’s largest digital-first, design-led and sustainable home retailer. The company’s brands include Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, and Mark and Graham. - WILLIAMS-SONOMA INC.
Williams-Sonoma Inc. is the world’s largest digital-first, design-led and sustainable home retailer. The company’s brands include Williams Sonoma, Pottery Barn, Pottery Barn Kids, Pottery Barn Teen, West Elm, Williams Sonoma Home, Rejuvenation, and Mark and Graham. - WILLIAMS-SONOMA INC.
Matthew Fazelpoor//June 14, 2023//
Michael Podhurst, 62, of Monroe Township, pleaded guilty June 13 in San Francisco federal court to charges related to his involvement in a multimillion-dollar fraudulent kickback scheme that defrauded Williams-Sonoma Inc. (WSI), the parent company of brands such as Williams Sonoma, Pottery Barn and West Elm.
Podhurst was indicted in April by a federal grand jury and charged with multiple counts related to the alleged scheme.
In the plea agreement, he admitted paying kickbacks in exchange for his co-defendant, Eric Marsiglia, a former executive at WSI, directing that company’s business to three warehouse logistics companies where Podhurst held executive positions and ownership interest.
Podhurst also admitted that the kickbacks were concealed from WSI.
“As alleged in the indictment and admitted to in the plea agreement, between approximately October 2018 and July 2022, Podhurst worked for three companies that provided WSI warehouses with forklifts, warehouse racking systems, and machinery. WSI used these warehouses to store and distribute WSI goods around the United States,” according to prosecutors. “Using his position and interest within the companies where he worked, Podhurst caused his companies to pay his co-defendants kickbacks in exchange for his co-defendant causing WSI to award and sign contracts with and make payments to the companies affiliated with Podhurst.
“During a four-year period, Podhurst directed the three companies where he worked to pay more than $12 million in kickbacks to a shell company owned and controlled by his co-defendant,” prosecutors said.
Under the agreement, Podhurst pleaded guilty to wire fraud conspiracy and money laundering conspiracy counts. If he complies with his plea agreement, the remaining counts will be dismissed at sentencing. His next scheduled court appearance is Nov. 14, 2023.
Podhurst faces a maximum of 20 years in prison for each of the wire fraud conspiracy and money laundering conspiracy counts, as well as a $250,000 fine for the wire fraud conspiracy count and a $500,000 fine for the money laundering conspiracy count.
As part of the sentence, the court also may order Podhurst to serve an additional term of supervised release and to pay restitution.
Last month, another co-defendant in the scheme, Kourosh Mirmehdi, pleaded guilty to wire fraud and money laundering conspiracy charges. Charges against two of Podhurst’s co-defendants, Marsiglia – the alleged ringleader – and Augusto Alizo, remain pending.