Fry’s VP Arrested For Embezzlement
By Alan Wolf -- TWICE, 12/23/2008
San Jose, Calif. — The merchandising VP of Fry’s was arrested on charges of embezzling more than $65 million from the chain in an elaborate kickback scheme he used to pay off gambling debts and support a lavish lifestyle.
According to media reports, the Internal Revenue Service has accused Umar Siddiqui of demanding kickbacks from at least five vendors in exchange for placing inflated orders. The payments, which were as much as 31 percent of the cost price of goods, were allegedly hidden in a shell company that paid nearly $18 million to the
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Venetian Resort Hotel Casino and subsidized a lush lifestyle that included a Ferrari, a penthouse apartment and private flights charted by casinos.
A criminal complaint says Siddiqui convinced Fry’s senior management to allow him to deal directly with vendors in order to save the company commission fees paid to sales reps.
Siddiqui, who supervised a buying staff of 120, was arrested at Fry’s headquarters here on Friday and was ordered held on $300,000 bond. He has since been fired.
None of the vendors were named as defendents.
Privately held Fry’s sells discounted electronics, computers, major appliances and furniture from 34 megastores located around the country.
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POST FROM "BRETT": "What that guy [did] is really no big deal. In some middle eastern countries, that is what people in his position do. It is PERFECTLY legal. No one lost any money or got hurt."
WHAT?? The guy steals millions from the company and you call him a "smart business man??"
And you're saying that if what he did is legal in his home country, nothing should happen to him here??
How naive are you? You actually believe the guy didn't know embezzlement is illegal here?? Get real!!
Uh... People DID lose money (the company). And the company DID get hurt.
William Napolotino - 2008-29-12 15:09:00 EST -
And this is the store where they seem more concerned with checking your sales receipt when you are going out the door than keeping tabs on their own people? I don''t think anyone ever tried to sneak $65,000,000 worth of stuff out the front door!
Raymond James - 2008-25-12 00:25:00 EST -
Maybe he was just pulling your chain? This guy is going to serve time.
FS - 2008-24-12 10:34:00 EST -
After a careful look at Brett's location and comment, I suspect this is the same person calling himself Brandon on the Tweeter posts. He is a complete kook.
Ignore this fool.
motion - 2008-24-12 10:18:00 EST -
Regarding "what this guy DID was no big deal," it doesn't matter WHAT he's used to in his country, he was doing business in the U.S., and what he did is illegal here. By your rationale, the kid who got caned over in Singapore years ago should have just been given a time-out in the corner. Ignorance of the law is never an excuse, and I have a hard time believing that he didn't know it was illegal.
Jeff - 2008-24-12 10:00:00 EST
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