Retailer Fires Executive Ausaf Umar Siddiqui After IRS Alleges $65 Million Kickback Scheme
Fry's Electronics has terminated its Vice President of Merchandising and Operations Ausaf Umar "Omar" Siddiqui after the IRS accused the executive of using an elaborate kickback scheme in place and allegedly pocketing more than $65 million from vendors, The Los Angeles Times reports.
The IRS contends that Siddiqui, 42, set-up a shell company to hide payments from five Fry's vendors, which he also allegedly cut side deals with at higher prices than the retail chain would have. According to the LA Times, the IRS was tipped off to the scheme by a Fry's employee who found spreadsheets detailing the activities in Siddiqui's office.
Siddiqui was arrested at the company's headquarters last week, and made an initial appearance in a San Jose federal court earlier this week. He has been released on $300,000 bond.
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