Former Aeropostale Exec Indicted
The U.S. Attorney’s Office for the Eastern District of New York filed charges against Christopher Finazzo, the former executive vice president and chief merchandising officer of Aeropostale Inc., and former Aeropostale supplier Douglas Dey, the owner of New York–based South Bay Apparel Inc. According to the U.S. Department of Justice, Finazzo and Dey entered into a scheme in which Aeropostale bought more than $350 million in apparel from South Bay in exchange for payment to Finazzo of about 50 percent of South Bay’s profits. The two have been charged with wire fraud, money-laundering conspiracy and conspiracy to violate the Travel Act. Finazzo also faces charges of causing Aeropostale to “make a false statement in a report that was filed with the Securities and Exchange Commission,” according to a statement released by the U.S. Attorney’s Office. According to the indictment, Aeropostale employees were unaware of the scheme. The case will be heard in U.S. District Court in Brooklyn, N.Y.
