An Irvine man has pleaded guilty to his role in a fraudulent kickback scheme that fleeced Williams Sonoma out of millions of dollars.Â
The U.S. Attorney's Office for the Northern District of California on Wednesday announced that Kourosh Mirmehdi, 63, admitted he conspired with two co-defendants — including former Williams Sonoma vice president Eric Marsiglia — to divert and steal millions in commercial real estate broker commission rebates from the San Francisco-based company. Â
Mirmehdi, who was indicted by a federal grand jury last month, pleaded guilty to one count of wire fraud conspiracy and one count of money laundering conspiracy. Remaining counts of wire fraud could be dismissed at sentencing as part of a plea agreement.Â
Working for a logistics company, Mirmehdi helped commercial real estate brokers find warehouses that would be leased by Williams Sonoma. He also helped negotiate lease terms for the home-goods retailer.Â
Upon entering into the leasing agreements, Williams Sonoma would typically receive millions of dollars in broker rebates. However, Mirmehdi told prosecutors that he began conspiring to divert and steal those funds around 2020.
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Mirmehdi and his co-conspirators tricked commercial real estate brokers into sending rebates to a shell company that belonged to Marsiglia. Prosecutors say that the defendants falsely presented the shell company as being connected to the retailer.
Their scheme raked in roughly $4.1 million, with Mirmehdi getting more than $1.35 million. Â
He faces a maximum sentence of 20 years for each of the wire fraud 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.Â
Mirmehdi is out on bond and his next appearance is set for Nov. 14.Â
Charges against his three co-defendants remain pending, according to prosecutors.Â