Apple manager arrested in kickback scheme

16 years ago

“A midlevel Apple manager was arrested Friday and accused of accepting more than $1 million in kickbacks from half a dozen Asian suppliers of iPhone and iPod accessories in a federal indictment unsealed and a separate civil suit,” Pete Carey reports for The San Jose Mercury News.

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“Paul Shin Devine, a global supply manager, and Andrew Ang, of Singapore, were named in a 23-count federal grand jury indictment for wire fraud, money laundering and kickbacks,” Carey reports. “‘Apple is committed to the highest ethical standards in the way we do business,’ Apple spokesman Steve Dowling said in a statement. ‘We have zero tolerance for dishonest behavior inside or outside the company.'”

Carey reports, “The indictment describes a scheme in which Devine used his position at Apple to obtain confidential information, which he transmitted to Apple suppliers, including Ang. In return, the suppliers and manufacturers paid Devine kickbacks, which he shared with Ang. The information enabled the suppliers to negotiate favorable contracts with Apple, according to the indictment.”