Fry's Executive Accused of $65 Million Embezzlement

A vice president at Fry's Electronics has been arrested and charged with embezzling $65 million through a kickback scheme involving the company's suppliers.

According to the Associated Press Ausaf Umar Siddiqui, the West Coast electronics chain's vice president of merchandising and operations, is accused of perpetuating a scheme in which he received kickbacks from suppliers in exchange for buying their goods at inflated prices, a scheme that included five vendors over a three-year period.

Siddiqui then allegedly set up a shell company to hide the illegal profits, and spent nearly $18 million of the funds at Las Vegas casinos. He was arrested last Friday at the Fry's offices in San Jose, Calif.; the arrest was the result of a probe by the IRS' criminal investigation division.