Opinion ID: 8414535
Heading Depth: 5
Heading Rank: 3

Heading: Scope of the Transactions

Text: Aéropostale eventually learned of Finaz-zo’s and Dey’s scheme when, during an unrelated investigation of Finazzo’s conduct, Aéropostale discovered an August 24, 2006, email to Finazzo from his estate planning attorney that disclosed Finazzo’s ownership interest in South Bay, the related South Bay entities, and the Vertical Lines entities. 9 Finazzo was terminated on November 7, 2006. Michael Braconi, an FBI Special Agent, testified that, overall, Aéropostale paid South Bay and the Vertical Line entities $267,078,261.41 between June 2002 and November 2006. South Bay, in turn, paid C&D — which was wholly owned by Finaz-zo — $21,223,831.14 during that same time period. South Bay also paid the related South Bay entities — which were co-owned by Finazzo and Dey — $2,959,520. Additionally, South Bay paid the Vertical Line entities — which were also co-owned by Fi-nazzo and Dey — $6,174,463.60. Half of South Bay’s payments into those jointly-owned entities — equalling Finazzo’s share of the companies — amounted to $4,566,991.80. South Bay’s total payments to Finazzo therefore amounted to the sum of South Bay’s payments to C&D ($21,223,881.14) and Finazzo’s one-half share of South Bay’s payments to the jointly-owned entities ($4,566,991.80). Thus, Braconi testified that South Bay paid Finazzo $25,790,822.94 in kickbacks between June 2002 and November 2006. 10 In connection with the mail fraud counts, CFO Cunningham testified that Aéropostale sent fourteen checks via UPS to South Bay as listed at Counts Two through Fifteen of the indictment. In connection with the wire fraud count, David Libenson, Vice President of Financial Operations at Aéropostale, testified that Aé-ropostale sent a wire transfer to South Bay as listed in Count Sixteen of the indictment. These payments were made from June 9, 2005 through November 1, 2006.