Tuesday, December 23, 2008

Fry's VP Accused of Stealing $65M to Pay Gambling Debts

According to the San Francisco Chronicle:
A Ferrari-driving vice president of Fry's Electronics Inc. who was allegedly such a heavyweight gambler that casinos chartered private planes to fly him to Las Vegas has been arrested on charges he embezzled more than $65 million from the retailer to fuel his lavish lifestyle and pay off debts....

The IRS alleges in a criminal complaint filed against Siddiqui that he set up a shell company that hid $65.6 million in kickback payments from five Fry's vendors from January 2005 to November 2008. Of that amount, $17.9 million was paid to subsidiaries of Las Vegas Sands Corp., which operates the Venetian Casino Resort, according to the criminal complaint and regulatory filings. Authorities confirmed the payments went to the casino.
A reminder of why operating casinos is such a big business.

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