$65 Million Fraud Via a Shell Company Scheme

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The IRS is accusing Ausaf Umar Siddiqui, vice president of Fry’s Electronics Inc., of embezzling more than $65 million from the company via a shell company scheme. They say he used the money to pay gambling debts in Las Vegas

A textbook shell company scheme would go like this: Set up a company that sources goods from a legitimate supplier, then mark up those goods and sell them to Fry’s. The shell company acts as a middleman,  keeps the markup, but adds absolutely no value to the transaction. Continue reading