A former vice president of Fry’s Electronics Inc. has been sentenced in federal court in San Jose to six years in prison and ordered to pay $65 million in restitution for defrauding the company in a kickback scheme. Ausaf Umar Siddiqui, 45, was sentenced Thursday by U.S. District Judge Jeremy Fogel and was taken into custody immediately to begin serving his sentence.
Siddiqui, who was vice president of merchandising and operations at the electronics chain from 2003 until he was fired in 2008, pleaded guilty before Fogel in February to one count of fraud and one count of money laundering. U.S. Internal Revenue Service criminal investigator Scott O’Briant said evidence in the case showed that Siddiqui made secret deals with vendors to pay kickbacks to two sham companies controlled by Siddiqui. Defense attorney Paul Meltzer said in a sentencing brief that Siddiqui suffered from a gambling addiction.
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