Fry's VP Arrested For Embezzling $65 Million
A Fry's VP was arrested last Friday for embezzling $65 million from the electronics retailer to fuel a gargantuan gambling lifestyle and feed his appetite for excess.
Ausaf Umar Siddiqui is accused by the IRS of concocting an incredibly profitable scheme in which he cut side deals with some of Fry's suppliers, buying their goods at higher prices than they would normally get, and buying more of them than he normally would, in exchange for kickbacks of up to 31 percent of the total sales price.
An anonymous insider tip we received on Friday, December 19th but weren't able to confirm gives a peek at what the arrest this looked like on-scene:
At Lunch time today, About 30 agents from the FBI and IRS rushed our Home office today. They arrested the Vice President of Fry's, Omar Siddiqui. I believe it has nothing to do with the company, but you can never tell. They also seized his computer, shredders, and boxes of paperwork.
IRS: Fry's exec stole $65M to pay gambling debts [AP] (Thanks to Keith!) (Photo: bryce_edwards)
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Fortunately, though, he no longer suffers from restless leg syndrome.
So is Fry's going to declare bankruptcy?
One way to slow down white collar crime is to start some "Cool Hand Luke" style prison chain gangs. Hard labor is necessary for these people. Country club prisons don't work well enough. The penalty for white collar crime needs to be so painful that very few would take the risk.
Fry's? I bet it was only $15 million before rebates.
@Scoobatz: Hopefully that medication didn't give him strange sexual urges, or else he's going to be in trouble in prison!
I hope he gets pound u in the ass penn. A cot 3 meals and all the sex he does'nt want. I wonder how many of the suppliers are going to jail for fraud also.
How surprising, a shady company is run by shady executives.
Apparently, they didn't check his receipts at the door like they do to all their shoppers!
Fry's blows, hope they throw the book at this asshole!
Fry's has seen a tremendous drop in quality since they first opened up a couple of years ago in Georgia. I'm so sick of the receipt checking, especially given that all they do is check the quantity of stuff in the bag, which stops nothing.
They used to have tons of great deals where I could go in there randomly and almost always walk out with something. Now they're just a bigger Best Buy. It baffles me how places like Amazon aren't just printing money comparatively.
@kwsventures: Take all their money while you're at it. We need more books being thrown at these guys.
Wonder how much longer it would have gone on if the guy hadn't left evidence in his office. It's a sad thing to say, but this sort of thing plagues many companies and industries.
Did the guy at the front stop the FBI agents and check them for a receipt for one embezzling VP? :D
Next time I get stopped by the damn receipt checker I will be sure to give them the "Most store shrink is Internal" speech 65 million times.
So everyone who has shopped at Fry's has been having to pay more so this guy can blow stolen money at the casinos and have a lavish lifestyle?
It's is the definition of DOUCHE BAG.
@chris_l: Last time I went to Fry's... when the receipt-checker said "can I see your receipt" I said "here it is" and held it up as I continued walking.
They can't stop you in Texas. By law. :D
It would have all been legitimate money if only he had waited to get his receipt highlighted.
@kwsventures: Send to Maricopa County. Pink underwear, they spend more to feed the dogs than the prisoners, and you can get a reduced sentence if you volunteer for a chain gang and/or grave digging detail.
no wonder Fry's has had less and less deals over the last few years!
Via Fatwallet, Here is another article which includes a scanned copy of the criminal complaint.
Evidently, the companies paying him kickbacks include Lead Data, Pheobe Micro (makers of Airlink routers), Behavior Tech Computing, and ProMedia Technologies.
"...a total of $167.8 million was deposited into the bogus company's bank account. Seventy wire transfers totaling $65.6 million came from five Fry's suppliers..."
Where the heck did he get the other $100 million? Either he's a really good gambler, or there are some other suppliers who are better at covering their tracks.
Why didn't Fry's have some checks and balances? What is going on in this world? Is everyone scamming and on the take?
@SWAK_GitEmSteveDave loves->★: penthouse arrest?
Hell, I'm looking at the headlines about the banks, I'm thinking this guy is due for a BONUS!
Oh yeah, the guy stealing $65 will still go to county to get raped and stabbed.
@kwsventures: Clearly they need someone standing at their conference room doors checking the receipts.
@chris_l: I usually just ignore the receipt checkers and walk straight out. If they are checking someone else's stuff they don't even say anything.
The receipt checking jokes are hillarious...
I like Fry's, too bad only the "affluent" North of Atlanta counties get Fry's.
@SJChip104: I was about post a reply something to the effect of "and next comes the 'slap on the wrist' sentence" but someone beat me to it.
Does this mean he won't get his Christmas bonus?
I'm shocked...SHOCKED I tell you! Fry's is very well known for its squeaky clean business practices. This must be some kind of mistake.
/sarcasm
//I don't stop for receipt checks at Fry's...it's unlawful detainment. Just say no thank you and keep walking.
@minsky: Of course if this dude was scamming $40+ million from them, that would put a dent in their ability to sell things at good prices and maintain their stores.
Makes me wonder what went on at CompUSA...
So how much will Fry's ask for on their bailout?
Does this mean Fry's will now need to bailed out by Uncle Sam?
There is no way that the Fry's brothers did not know what was going on. They own an island in the Bahamas. This has to be part of a larger tax evasion scheme. I bet we will see more information trickle out in the next few weeks. There is much more to this story than what we have heard so far.
What is new? This happens all the time. I know people that hire illegalls all the time and doesn't pay taxes or SS on them and millions of our dollors are going to Mexico a day. We pay for thier medical bills, education, housing and food to support them. The person that is doing this is a pilot for AA and was on the city council of Southlake,Tx. and the sad thing is our government won't do anything about it. The Judges of Tarrant County, Tx. just ignore the fact that this goes on. They won't force him to provide documents such as check stubs 1099's and SS # or any thing. They just continue to allow him to hide money so he won't have to pay taxes. Know one seems to face the fact that something needs to be done with this cancer. i would love to talk to someone that has power to fix this mess so our taxes won't be so high. The illegal Mexicans make more money than my American college educated childern. So, It's not only the Corp's its our own government that is stealling from us. Just in another way. Lt from Tx.
And how much do you want to bet he'll get penthouse arrest? Yet the guy who steal 65 dollars goes to Rikers.