News

Fry's VP Indicted for Wire Fraud, Money Laundering

Head buyer for electronics retailer allegedly ran multimillion-dollar kickback scheme

By Sharon Gaudin, Computerworld

Page 2

To make up for the high kickbacks, the vendors charged Fry's more than market value for the merchandise, according to court documents. The IRS said that Siddiqui set up a fraudulent company called PC International LLC to which the vendors paid the kickbacks directly.

According to the government, the maximum penalty for each count of wire fraud is 20 years in prison, and it's 10 years for each count of money laundering.

In a similar case, a former IT contractor for the city of Newark, N.J., pleaded guilty this past July to using his position to defraud Cisco Systems Inc. of millions of dollars.

Fry's Electronics Inc.

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