A federal grand jury in Boston last week indicted the former executive in charge of Gillette Co.’s retail promotions on 15 counts of mail and wire fraud and one count of money laundering.
Gino Deluca, former director of Gillette’s permanent merchandising systems department, is accused of receiving almost $600,000 in kickbacks from vendors in exchange for Gillette contracts, according to news reports. Deluca was responsible for promotion and display of Gillette grooming products at retail stores.
Gillette terminated Deluca, a 20-year Gillette veteran, last August and approached the Justice Department with the case, spokesperson Eric Krause said yesterday.
Deluca oversaw $40 million in annual contracts and is accused of directing more than $20 million worth of business to three Canadian vendors as well as a San Diego-based shop in 2001 and 2002 in exchange for kickbacks. The companies were identified in news reports as Canadian-based Top Marketing, Interesting Display and Ideas Inc., and Dascal and Associates. MGM Graphics is based in San Diego.
The indictment also contends that Deluca instructed his staff to deal with vendors who were offering him kickbacks which ranged from electronic appliances and vacations to condos and vehicles.
Deluca has pleaded not guilty. If convicted, he faces up to five years in prison and a $250,000 fine on each of the 15 counts of mail and wire fraud. He also faces up to 10 years in prison and a $250,000 fine on the money-laundering charge.
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