He was played by Vince Vaughn.
During childhood, Fred Claus suffered his younger brother Nick's saintliness. Jump ahead: Fred is a fast-talking, genial but self-centered guy in Chicago looking for $50,000 to open an off-track-betting shop. When one scam goes awry, he calls Nick at the North Pole for a loan: Nick will give him the money only if Fred comes up to help a few days with the Christmas rush. After his girlfriend dumps him, Fred heads north. Santa's facing an audit from an efficiency expert, and it's not pleasant. Fred's job is to review charts and determine who's naughty and who's nice. Is there any fraternal feeling left, can either learn from the other, and what about Santa getting fired? Mostly Fred is the real Santa Clause, he sees the good in people. At first he was reluctant to help his brother out, but he owes him. When he took the money, he thought about running his own business he needs 50,000 dollars of start up money to start it. Nick bailed him out, when he got into trouble with the law and paid his bail. Fred was always jealous of him, they were estranged for a long time. Nick wanted to reconcile with him a deal with him to loan him the 50,000 if he comes to the North Pole and help him out. While their he made friends with the elf Willie.
Clyde Archibald Northcutt, an efficiency expert who comes to assess the situation at the North Pole and wants to shut this place down. Clyde holds a grudge against Nick for not giving him that Superman cape when he was a kid. Fred was also a role model and mentor to a kid named Samuel "Slam" Gibbons who was an orphan kid and wanted to ask Santa that he wanted a dog for Christmas. Slam made the naughty list, while Fred was in charge of the naughty and nice list and he decides who is naughty or nice. He put Slam and the rest of the kids in the nice list who were naughty. Nick and Fred fought about it.
After Fred left, Nick got hurt and he can't deliver the presents and Clyde is going to shut the North Pole down. Fred came back and after his support group straighten him out and use the 50,000 to bring him back to the North Pole. He took over Nick's role and help him deliver the presents. He even told Nick, why he put all the naughty kids in the nice list. Because they are all good kids, they just need a little hope and goodness like us to help them.
Nick agreed, Fred started his delivery route and deliver the presents before the deadline. Nick remembered what Clyde wanted for Christmas and gave him that Superman cape he always wanted. Fred delivered Slam the dog he wanted for Christmas and tell him not to lose hope and always believe in Santa Claus. Nick made the delivery route on time and the North pole is saved. Nick and Fred reconciled and Fred has a new purpose and decide go into the family business. Fred also reconciled with his parents and his girlfriend and decide go to Paris and take the next step. Fred became a role model for Slam and his mentor and helped him got him a new family to take care of him. Nick also rebuilt the bird house that Fred loved and the bird that he cared about returned.