Apple Manager Accused in iPhone, iPad Kickback Scheme
Authorities have arrested an Apple Computer Inc. manager named in both a 23-count federal grand indictment and a separate civil lawsuit for wire fraud, money laundering and taking kickbacks from Asian suppliers of iPhone and iPad accessories according to a report in the San Jose Mercury News.
The Mercury's report said that Paul Shin Devine, an Apple global supply manager, was arrested by the U.S. Marshal's Service and charged with providing inside information to Asian manufacturers of iPhone and iPad accessories that enabled them to drive favorable contracts with Apple.
In exchange, Divine received payments from the suppliers, the report said.
Divine is accused of using his position at Apple to gain private information which he passed on to the Asian suppliers and Andrew Ang, of Singapore, who also was named in the indictment.
The manufacturers were not named in the indictment, the Mercury reported.
In a separate civil lawsuit filed against Divine, Apple claimed that he received in excess of $1 million in payments from kickbacks over an extended period of time, the report said.
According to the report, a joint investigation of the FBI and IRS uncovered the scheme.
Apple issued a statement in which it affirmed its policy of "zero tolerance for dishonest behavior inside or outside the company."