MORNING LINE: Casino high roller Siddiqui Indicted
January 9, 2009 - 6:06 am
Ausaf Umar “Omar” Siddiqui’s indictment on Thursday on federal fraud and money laundering charges tied to his alleged embezzlement of $65 million from Fry’s Electronics vendors raises many compelling issues and questions.
Siddiqui, the former Fry’s executive, created a fake front company he allegedly used as a pass-through to launder money. The IRS has determined that $167.8 million was deposited in the company in recent years. It’s contended that most of that money was used to support a lavish lifestyle and to pay Siddiqui’s enormous gambling debts at The Venetian, MGM Grand, and elsewhere.
If the fraud aspect of the case is $65 million, what is the source of the other money? Legitimate? Illegitimate? Undetermined?
It will be interesting to see where this one goes, and whether certain casino executives find themselves answering tough questions about how they marketed to a company executive who, on paper, made $225,000 a year in salary.
My read of the indictment shows that Counts 6 through 9, the money laundering counts, are all associated with Venetian Marketing and total $4.75 million in four transactions dating from June 10, 2005, to June 13, 2008.