An Apple manager has been arrested over accepting kickbacks from various contractors on August 13, 2010. Paul Shin Devine, Global Supply manager, Apple, was charged with wire fraud, money laundering and accepting kickbacks from various component manufacturers in Asia.
Mr. Devine received the money from a half a dozen of Asian suppliers of iPhone and iPod accessories. He shared confidential information with contractors that helped them to win Apple’s contracts. The companies include Cresyn Co. Ltd. in South Korea, Kaedar Electronics Co. Ltd. in China and Jin Li Mould Manufacturing Pte. Ltd. in Singapore.
Regarding the incident, Steve Dowling, said, “Apple is committed to the highest ethical standards in the way we do business,……We have zero tolerance for dishonest behavior inside or outside the company.”
Devine shared the kickbacks with Andrew Ang, an employee of Jin Li who brokered deals with his employer. Apple filed case against Devine in U.S. District Court in San Jose. He is scheduled to appear at the court on Monday.
Apple is going through a tough time. In June 2010, at the World Wide Developers’ Conference, Apple released its latest Apple iPhone 4. Though the phone became a runaway success, consumers and tech-critics panned the phone for its “Antennagate” problem. This was followed by resignation of
Mark Papermaster, head of Apple’s Devices hardware engineering left the company.
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