The Palms casino resort filed a suit against Ausaf "Omar" Siddiqui, who was indicted in December 2008 in what the IRS described as a kickback scheme by the former Fry's vice president of merchandising and operations, the Las Vegas Sun reported Monday.
Siddiqui allegedly demanded and received $65.6 million in kickbacks from Fry's vendors to put their products on Fry's shelves, using the money to support his expensive lifestyle and gambling habit, the government said.
The former executive pleaded guilty in the scheme, a Fry's official told the San Jose Mercury News, and sentencing is set for December.
Fry's has also filed a suit against Siddiqui in U.S. Bankruptcy Court in San Jose, Calif.
Siddiqui, of Palo Alto, Calif., filed for Chapter 7 bankruptcy liquidation in July, listing assets of $6.95 million against liabilities of $136.56 million, including millions of dollars in gambling debts.
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