Ronald K. Johnston, 37, of Atlanta, has pleaded guilty to one count of conspiracy to commit wire fraud and two counts of filing a false tax return, arising out of a scheme to defraud Home Depot, according to United States Attorney David Nahmias."This is the third former Home Depot employee who has now admitted accepting bribes from the company's foreign suppliers and then not reporting or paying taxes on that illegal income. This type of conduct corrupts the honest operation of American businesses, and those who pay, receive, or solicit such payoffs risk federal prosecution," said Deborah Garza, Acting Assistant Attorney General in charge of the Department's Antitrust Division.
According to Nahmias and information presented in court: Between 2005 and 2007, Johnston, a former merchant for flooring, participated in a conspiracy to defraud Home Depot by taking kickbacks from foreign suppliers seeking to do business with Home Depot. Johnston arranged for Home Depot to purchase items for resale on less than the most advantageous terms to the company.
Another former Home Depot employee, Anthony Tesvich, who pleaded guilty last June to similar offenses, received millions of dollars in bribes from foreign suppliers and passed on to Johnston through kickbacks hundreds of thousands of dollars and also made payments to a home improvement company for work on Johnston's residence.
In July 2008, another former Home Depot employee, James P. Robinson, also pleaded guilty to similar charges arising out of his participation in this scheme to defraud Home Depot.
Johnston also pleaded guilty to filing a false tax return by underreporting his income for tax years 2005 ($60,108 in unreported income); and 2006 ($125,893 in unreported income).
Johnston could receive a maximum sentence of 20 years in prison on the conspiracy to commit wire fraud charge, and a maximum sentence of 3 years in prison on each tax charge. Johnston also could be fined up to $250,000 on each count.
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