Fry's exec arrested in alleged $65 million fraud scheme to pay off Vegas debts

[The Straight Story]

Fry's exec arrested in alleged $65 million fraud scheme to pay off Vegas debts


A one-time computer salesman who rose through the ranks to help build Fry's Electronics into a robust national retailer is facing allegations that he defrauded the San Jose-based company out of $65 million, much of which he used to pay off enormous gambling debts in Las Vegas.

Ausaf Umar Siddiqui, 42,who goes by "Omar" and has been Fry's vice president of merchandising and operations, appeared in federal court today, where prosecutors filed a complaint that alleges he was involved in a "secret kickback scheme to defraud Fry's Electronics of millions of dollars.''

Fry's executives didn't know about the illegal kickbacks, the federal complaint states. The alleged scheme occurred from 2005 until mid-October when a Fry's high-level employee walked into Siddiqui's office at 600 E. Brokaw Road and saw confidential spreadsheets, letters and extraordinarily high commission amounts on Siddiqui's desk.

Siddiqui is expected to be formally charged in U.S. District Court on Jan. 15, on counts of money-laundering and wire fraud.

http://www.insidebayarea.com/timesstar/ci_11290239