Omar Siddiqui- Long-Time Employee of Fry’s Electronics
A 20-year employee of Fry’s Electronics was found guilty of embezzling $65.6 million dollars over a four-year period from the electronic store to pay off his debt and fuel his lavish lifestyle. According to the Internal Revenue Services (IRS), Siddiqui created back-room deals with five supplier companies for Fry’s Electronics. The company overpaid for merchandise that was later sold at a reduced price resulting in a significant financial loss for the company. The leftover money was deposited into a shell company account, PC International, controlled by Omar Siddiqui.
As the former Vice President of Merchandising and Operations for Fry’s he supervised a staff of 120 individuals responsible for buying all merchandise sold at the thirty-four Fry’s locations in the United States. It is alleged that Mr. Siddiqui convinced executives at Fry’s Electronics that despite his staff of 120 he should be solely responsible for the purchasing from suppliers, instead of independent contractors, resulting in the vast amount embezzled from the electronic chain.
The IRS filed a criminal complaint against Mr. Siqqiqui in 2011. After filling the complaint, the IRS further examined bank records of Omar Siddiqui. He had racked up $167 million dollars in gambling losses over 10 years and had taken out loans totaling approximately $10.4 million. In addition, the IRS had a $18.5 million-dollar lien on his property for unpaid taxes.
ClearForce could have identified Mr. Siddiqui’s unusual financial behavior in real time, thus allowing his employer to investigate and make ongoing decisions regarding his control of purchasing power for Fry’s Electronics stores. ClearForce could have notified leadership early regarding significant and unusual increase in personal financial debt, reduced Mr. Siqqigui’s access to financial information, and restricted ability to “sign off” on vendor contracts without review.