Ausaf Umar Siddiqui, the Vice President of merchandising and operations at Fry’s Electronic Stores, has been accused of embezzling $65 million dollars to support his lavish lifestyle and a gambling habit.

Siddiqui has a home in Palo Alto, owns a Ferrari and was a frequent visitor of casinos in Las Vegas, Nevada.

Fry’s Electronics is based in San Jose, California and sells electronics, appliances and computers in ten states. They operate 35 retail locations and also sell products online.

Ausaf Umar Siddiqui is accused of making deals with vendors to buy larger lots of their goods at inflated prices in return for a "kickback" of as much as 31% of the total sale price. These dealings cut out the "middleman," also known as "salesmen."

The IRS alleges this scheme involved at least five major vendors and that a shell company Siddiqui set up accepted payments of over $65 million dollars from January 2005 to November 2008.

Recovered records show that Ausaf Umar Siddiqui paid over $17 million dollars to the Las Vegas Sands Corp (NYSE: LVS) (NYSE:LVS) and their subsidiaries over this same period.

Ausaf Umar Siddiqui was taken into custody on Friday at Fry’s headquarters. He’s being held on $300,000 bond.

Although he hasn't been formally charged with a crime, he was fired from his position with the company and could face wire fraud charges.

Fry's officials stated that his scam didn't affect the price of goods sold at their store. Courtesy: Superior Investor

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