Florida man sentenced to prison for conspiring to divert payments belonging to Williams Sonoma to a shell company and private accounts Date: Aug. 27, 2024 Contact: newsroom@ci.irs.gov SAN FRANCISCO — Augusto Alizo was sentenced today to 14 months in prison for charges related to his role in a multi-million-dollar fraud scheme, announced United States Attorney Ismail J. Ramsey and IRS Criminal Investigation (CI) Acting Special Agent in Charge Michael Mosley. The sentence was handed down by the Hon. Richard Seeborg, Chief U.S. District Judge. On February 27, 2024, Alizo, of Weston, Florida, admitted he conspired with two co-defendants—a Vice President at Williams Sonoma, Inc. (WSI), and Kourosh Mirmehdi, Alizo’s direct report at the global logistics company where they both worked — to divert and steal more than $4.1 million in commercial real estate broker commission rebates that should have gone to WSI. WSI is a home-goods retailer headquartered in San Francisco that operates brands such as Williams Sonoma, Pottery Barn, and West Elm. The global logistics company where Alizo worked helped clients secure commercial real estate, including large commercial warehouses. In his plea agreement, Alizo admitted that he concealed from the global logistics company that co-defendant Mirmehdi was helping WSI obtain commercial warehouse space. Alizo also admitted that he and his co-defendants concealed from WSI and the global logistics company that he, Mirmehdi, and the conspiring Vice President at WSI pocketed real estate broker commissions rebates that should have gone to WSI. As part of his plea agreement, Alizo admitted that from 2020 through 2022, co-defendant Mirmehdi was working to secure commercial warehouse space for WSI in Georgia, New Jersey, Arizona, and California. Alizo hid this from their employer. Alizo also hid from their employer the fact that his co-defendants were negotiating with real estate brokers to obtain broker commission rebates that should have gone to WSI. These broker commissions rebates were paid to a shell company owned by the conspiring WSI Vice President, and then distributed to private bank accounts controlled by Alizo and his co-conspirators. Alizo also admitted in his plea agreement that he knew co-defendant Mirmehdi was holding himself out to real estate brokers as an employee of the global logistics company and that in negotiating with real estate brokers Mirmehdi was benefitting from status and bargaining power due to his position and title at the global logistics company. Alizo further admitted that he knew Mirmehdi was falsely and deceptively representing that WSI was the global logistics company’s client when in fact it was not. Alizo concealed this deception from his and Mirmehdi’s employer. As part of his plea agreement, Alizo admitted that he acted with the intent to deceive and cheat both his employer and WSI to further the scheme and conspiracy to defraud so that he and his co-defendants could obtain broker commissions rebates that should have gone to WSI. Alizo admitted that he received approximately 25% of the broker commissions and rebates obtained as part of the conspiracy. Alizo admitted that the conspirators obtained a total of $4,110,323.81 and that he personally obtained $965,526.51. In a memorandum filed for the sentencing, the government argued that Alizo’s involvement in the fraud conspiracy was critical. Rather than using his authority as a corporate executive to stop the fraud before it began, Alizo gave his direct report, co-defendant Mirmehdi, the green light to engage in fraud, identified how the conspirators would conceal the fraud, and ensured the fraud would not be discovered by his employer. As a result, Alizo pocketed nearly $1 million in fraud proceeds. Alizo was indicted by a federal grand jury on April 11, 2023. He was charged with one count of wire fraud conspiracy, in violation of 18 U.S.C. § 1349; four counts of wire fraud, in violation of 18 U.S.C. § 1343; and one count of money laundering conspiracy, in violation of 18 U.S.C § 1956(h). Under the plea agreement, Alizo pleaded guilty to the wire fraud conspiracy. In addition to the 14-month term of imprisonment, Chief Judge Seeborg further sentenced the defendant to a two-year period of supervision following his release from prison and ordered Alizo to pay $965,526.51 in restitution to Williams Sonoma. Alizo was ordered to surrender into custody on December 2, 2024. Assistant U.S. Attorney Christiaan Highsmith is prosecuting the case with the assistance of Sara Slattery. The prosecution is the result of an investigation by the IRS-CI.CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad. CI is the criminal investigative arm of the IRS, responsible for conducting financial crime investigations, including tax fraud, narcotics trafficking, money-laundering, public corruption, healthcare fraud, identity theft and more. CI special agents are the only federal law enforcement agents with investigative jurisdiction over violations of the Internal Revenue Code, obtaining a more than a 90 percent federal conviction rate. The agency has 20 field offices located across the U.S. and 12 attaché posts abroad.
