Jackson man accused in kickback case goes to trial today

The trial for a Jackson man charged with felony stealing for allegedly swindling $500,000 from a Sikeston, Mo.-based company will begin today, said Cape Girardeau County Prosecuting Attorney Morley Swingle.

Jason Mitchell was allegedly involved in a kickback scheme that led to the transfer of more than $500,000 to a fraudulent bank account from 2007 to 2010.

Mitchell, a former employee of the landscaping materials firm DeWitt Co., and Rajiv Toprani of Clarksville, Tenn., the owner of a textile supply company, were charged in February 2011 with felony stealing. Charges against Toprani were dropped three months later, when he agreed to testify against Mitchell.

Mitchell had been directed by his employers to purchase materials for DeWitt through textile company KT America at the lowest possible price, according to a lawsuit stemming from the alleged kickbacks.

Mitchell allegedly collaborated with Toprani and kept purchasing items from the company at whatever price the two chose and received back into the fraudulent account a percentage of the purchase price. Mitchell allegedly "doctored the books" to cover up the kickbacks in exchange for a percentage of the money. The kickback varied, but averaged around 3 percent of the price, according to court records.

KT America later filed a lawsuit against DeWitt, alleging that the company owes KT America $938,125.45 for goods purchased from June to August 2010. The suit also asked Dewitt to pay 18 percent annual interest while repaying the amount.

DeWitt levied counterclaims against KT America, arguing that KT America knew of Toprani's alleged misdeeds and made "negligent and reckless representation for its own benefit and commercial gain."

KT America has sold more than $56 million in materials to DeWitt since 2001, and DeWitt does approximately $22 million in sales each year, according to court documents.

DeWitt also filed petitions against Mitchell, Toprani and former DeWitt CEO Richard Potter, alleging that the three conspired in the scheme. The petitions ask that the three men pay individual sums "fair and reasonable in excess of $500,000."

Pertinent address:

101 Court St., Jackson, MO