Former Raymour & Flanigan Exec Sentenced

January 20, 2010  by in UnCategorized   

By Home Furnishings Business in on January 21, 2010

A judge in Bridgeport, Conn., sentenced Benjy Orbach, former vice president of operations at Raymour & Flanigan, Liverpool, N.Y., to a year in a half in prison for taking kickbacks from contractors, the Hartford Courant reported Wednesday.

Orbach also was ordered to pay $526,815.80 in restitution to Raymour & Flanigan, and $267,505.33 in back taxes, penalties and interest to the Internal Revenue Service for failing to declare the kickbacks as income.

Orbach collected kickbacks from a cleaning contractor he'd hired for Raymour & Flanigan. The cleaning company also paid Orbach's wife almost $62,000 for a "no-show" job. That income was never declared on the Orbachs' tax returns.