Posted on 12/22/2008 5:27:48 PM PST by BurbankKarl
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 in San Jose 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.
According to the complaint, which was unsealed today, Siddiqui convinced Fry's that the company should eliminate sales representatives on his accounts, and instead, he'd act as a middleman between vendors and Fry's. He promised that he'd save Fry's a lot of money that way.
But instead, the complaint alleges, he ended up charging exorbitant commissions - up to 31 percent, or ten times the normal amount - to the vendors, which he funneled to his own "straw" company PC International. Vendors were guaranteed steady business, so Siddiqui would have a steady cash flow to pay off casinos. Siddiqui spent $162 million in three years at just two of his favorites, the MGM Grand Casino and Las Vegas Sands Casino, according to his bank statements detailed in the complaint written by IRS Agent Andres Gonzalez.
(Excerpt) Read more at dailynews.com ...
I was just about to post that.
Depends on how much you save on the item I suppose.
If you can buy it down the street at the brick and mortar store for the same price why would you buy it online anyway?
I refuse all rebates now. If it has a rebate, I don’t buy it. It’s a lose-lose situation.
Yup. I just want an honest deal.
I didn’t see any savings on the IPod Classic. Walmart has it at the same price.
249.00 total.
Those policies would weigh heavily in the decision to buy through them or not.
Thanks for your help!
Fry’s seems to be United Nations front operation...best I can tell. I don’t know about other states, but there are some strange people working in that place here in Tx.
I cant help you there.
Walmart does sell alot of stuff like that cheap because they have the volume.
In that case I would buy at walmart. Sometimes I would buy a thing like that at newegg if I was sending it as a gift just so I didnt have to fool with shipping.
Of course you could get it at walmart.com in that case and it would be easier for the recipient to return if needed.
The one in Plano Tx is just as bad
Anyone have an idea why the "clean-shaven" detail is important to this story?
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Send treats to the troops...
Great because you did it!
www.AnySoldier.com
We have a couple of Frys in my area, I’ve always had good luck with them. Now you can order from their online site and pick up at the store, I did that a few weeks ago and it worked out great. I bought Polk speakers and a Harmon Kardon receiver from them at outrageous prices. My sister just ordered a laptop from them and it’s being sent to an FPO box, we’ll see how that turns out (she’s hoping to have it for Christmas).
I’m in Tx
They should have checked his receipts every time he left the building.
lol!
I’ve got a buddy that was in Germany and wandered into a retail store wearing a similar outfit to the uniforms of the sales people. People kept coming up to him and asking him questions in German. When he related the story to me he said “They were asking me questions about products I knew nothing about in a language I don’t speak, and I finally understood what it would be like to work for Fry’s.”
I was pretty sure it wasn't purely the product of my lively imagination, but still... I avoid the place because it just creeps me out and I don't cotton to promising my first born and all future inheritances, etc when i present them payment in the form of otherwise perfectly legal tender. Weirdos!
Now thats funny!
Heheh. Funny story for my former employer.
I remember I used to enjoy going to Fry’s. Until I began working there (before being ‘let go’ on not so wonderful terms). They may have the best prices (usually), but the customer service situation, the politics (not Dem, Rep, more the way the store is fun), just really got to me.
Glad I no longer work there. Not glad that I didn’t leave on my own terms but, eh, that’s life.
Spelled "Venetian" for you non-journalists who are interested in accuracy. ;)
Las Vegas Sands is the holding company.
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