Jackson man charged with stealing from employer through kickback scheme

After a six-month investigation, Sikeston, Mo., authorities and the Missouri State Highway Patrol have accused a Jackson man, formerly employed by the DeWitt Company, and the owner of a Tennessee-based textile supply company of stealing more than $500,000 from DeWitt over three years in an elaborate kickback operation.

Felony stealing charges were filed Tuesday against Jason Paul Mitchell, 34, of Jackson and Rajiv "Reggie" M. Toprani, 40, of Clarksville, Tenn., in Cape Girardeau County.

The pair is to be prosecuted in Cape Girardeau County because the alleged money stolen from the DeWitt Company was paid through a wire transfer from an account at a Bank of America in the county. Mitchell was arrested at his home Tuesday, and Toprani was arrested by authorities in Montgomery County, Tenn.

Rajiv Toprani

According to an affidavit filed with the court by Sikeston detective Andy Caton, Mitchell opened the account under the name Global Census.

As an employee of DeWitt, Mitchell was directed by his employers to purchase materials for the company through Toprani's company, KT America, at the lowest possible price. Caton, based on testimony from DeWitt CFO Richard Potter, alleges Mitchell kept purchasing items from Toprani's company at whatever price the two chose and received back into the fraudulent account a percentage of the purchase price. Potter, according to Caton's statement, assisted Mitchell by "doctoring the books" to cover up the kickbacks in exchange for a percentage of the money. The kickback varied according to what fabric was purchased and Toprani's profit margin, but averaged around 3 percent of the price.

Potter also estimated for authorities that Mitchell received in all $950,000 in kickbacks from Toprani's company from 2003 to 2010. According to the affidavit, police have only obtained bank records from 2007 to May 2010.

KT America has sold more than $56 million in materials to DeWitt since 2001, and DeWitt does approximately $22 million in sales each year. They started their business in Sikeston 40 years ago, according to Meredith DeWitt, the company's vice president.

DeWitt manufactures a full line of landscape fabrics, such as weed-barriers and shade coverings used by gardeners and golf courses.

"We feel betrayed," DeWitt said Tuesday afternoon. "Mitchell had no college education; he came here right out of high school and we groomed him. My dad pretty much taught him everything he knew."

Mitchell began working for the company in 1998, she said, and quit in May, which Caton lists in his affidavit as the date the company's CEO, Larry DeWitt, became aware of the theft. Caton wrote that Potter admitted the details of the scam to Larry DeWitt and that he'd been splitting the profit with Mitchell. DeWitt, Caton said subsequently fired Potter after the admission.

Meredith DeWitt agreed Tuesday that the scheme was elaborate and it was something they would have never known about unless they were monitoring Mitchell's personal accounts.

"The vendor paid them separate so it never flowed through DeWitt Company financials," she said. "He lived within his means; he didn't go out and spend a million dollars. There's no way we could have caught something like this."

While DeWitt said she wasn't concerned about the company's reputation or their ability to find new vendors, she said the incident has led to them developing new business practices. They plan to draw up more complete business agreements with suppliers.

"It's been a bump in the road, but we'll get through it," DeWitt said. "We have very loyal customers; they've helped us out through tough times."

ehevern@semissourian.com

388-3635

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905 S. Kingshighway, Sikeston, MO