Fry's VP of Merchandising Accused of $65 Million Fraud to Pay Off Gambling Debt

SAN JOSE, California -- As reported by the San Jose Mercury News: "A one-time computer salesman who rose through the ranks to help build Fry's Electronics into a robust retailer is facing allegations
Fry's Electronics  that he defrauded the San Jose 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 was Fry's vice president of merchandising and operations, appeared Monday in federal court, where prosecutors filed a complaint alleging he masterminded 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. After 10 years with the company, Siddiqui was fired Monday.

"Siddiqui was known around the office for driving fast cars, carrying wads of $100 bills in his pocket and boisterously rooting during sports events he watched on the four TV screens in his office. He spent $162 million in three years at the MGM Grand Casino and Las Vegas Sands Casino, according to his bank statements detailed in the complaint written by IRS Agent Andres Gonzalez.

"The suspected scheme occurred from 2005 until mid-October when a high-level Fry's 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..."