Vendors Settle With Fry's Electronics in Breach Suits

By Lisa Fernandez
|  Thursday, Jan 30, 2014  |  Updated 8:11 PM PDT
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Vendors Settle With Fry's Electronics in Breach Suits

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After five years of litigation stemming from the high-profile money laundering arrest of a past Vice president at Fry's Electronics who had a gambling problem, the last of the seven vendors has settled with with the San Jose-based company in a series of civil suits.

The vendors alleged that Fry's never paid them for the equipment and gadgets they negotiated through Omar Siddiqui, who was arrested in 2008 by the IRS in a commission-based kickback scheme.

A Fry's spokesman did not return a phone call or emails on Thursday seeking comments.

Federal court documents showed Siddiqui used money illegally obtained through his high position at Fry's to pay off massive gambling debts in Las Vegas and elsewhere.

The vendors filed suit in 2009 to collect money and claimed economic duress seeking to recover the funds which they alleged were paid with knowledge of Fry's to finance Siddiqui's lavish lifestyle, outlined in court documents. The suits alleged breach of contract, fraud among other issues.

One of the vendors, Phoebe Micro in Fremont, for example, claimed at one time that Siddiqui owed them about $10 million in unpaid orders.

Promedia Technologies, Inc., settled late Wednesday for an undisclosed sum, according to lead attorney, Robert Rivas.

Lead Data International, US Media Technologies, and Phoebe Micro, Inc., settled months before. ECS and its parent company settled early last year. BTC sought bankruptcy protection. All the settlement terms are confidential.

In 2011, Siddiqui was sentenced to six years in federal prison after he pled guilty to money laundering and wire fraud.

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