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 ...
The one in Las Vegas is kind of a Filipino Expatriate Club.
Interesting. I always thought that Frys was a central california thing. I’m surprised that they’re all the way to Texas.
It always did seem odd that the Frys in silicon valley had overwhelmingly east-indian looking employees. often wondered why they weren’t up for some sort of race-bias employment practices suit.
I'd been in the city at that time for approximately one day, and my German wasn't so hot either, so I had to tell him that I probably couldn't help.
At least it proved that I looked like a native.
≤}B^)
$162 million in three years. Somewhere in Vegas, this evening, there are some very tired ladies.
The irony is simply ironic. Fry’s has a reputation of the most security conscious retailer. There have been newspaper articles detailing their policies. Their stores are built like castles, windowless, narrow, single exits, where each customer must produce the receipt for every item in the bag. The management doesn’t trust its store employees either. A very difficult environment to work in. But hey, the execs, the MBAs, walk away with zillions!
Omar stole $65 million, but spent $162 million gambling, sounds as if the legbreaker are looking for him.
You know, over the years I’ve found that when I’m working for a management that doesn’t trust the employees it’s usually because they’re afraid we’re up to the same shenanigans they’re up to.
Gas costs, time, hassle, lack of urgency on replacement...or the usual point that I *can’t* find what I need locally, or can’t find as good or as reasonably priced.
Newegg’s cheaper than the local stores for comparable products and tends to have things that I just can’t get here very easily, like fans for my old systems or dirt cheap smaller hard drives. $30 for a new in the box 80 GB WDC when I needed one in a pinch? Heck yeah.
Yup Yup and Yup
There is a way to win....
If another local store has an “advertised price match” policy, they will usually match the rebated price.
At least in AZ, this works out better, since you pay sales tax on pre-rebate price - so the final effect is that you save the sales tax on the rebate amount...:^)
PS - I also like www.newegg.com
lol. I know the feeling.
I worked at the one at Sunnyvale. It seems the vast majority of the employees either came from India, Pakistan, or the Philippines. Not a bad thing in of itself being so ‘diverse’ and all, but you’d be hard press to hear English in the break room.
And yeah, Fry’s is very security minded. The the point of being anal about it. I mean, they fired an employee because ‘oops’, he drank a $1 bottle of water without paying for it. Even when he voted to pay for it after they ‘caught him’, they still fired him.
Never mind the incompetence of many of my former co-workers. I was so glad to stop working there (already mentioned I wished I left on better terms. But still...).
“Fraud” and “Fry’s” in the same sentence? Now there’s a shocker.
I live in Georgia and have 2 Frys within 15 miles of me, so they have gone coast to coast. Not sure how far North they have gone.
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