The San Jose Mercury News is reporting that a midlevel manager at Apple named Paul Devine, has been arrested due to his involvement in handing over company secrets to Asian iPhone and iPod peripheral makers. As part of the scheme, Devine received over $1 million in kickbacks from the manufacturers. Paul Shin Devine, a global […]
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Apple Manager Arrested in Kickback Scheme

The San Jose Mercury News is reporting that a midlevel manager at Apple named Paul Devine, has been arrested due to his involvement in handing over company secrets to Asian iPhone and iPod peripheral makers. As part of the scheme, Devine received over $1 million in kickbacks from the manufacturers.

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.

“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.”

The alleged scheme used an elaborate chain of U.S. and foreign bank accounts and one front company to receive payments, the indictment said, and code words like “sample” were used to refer to the payments so that Apple co-workers wouldn’t become suspicious.

Of course, Devine faces criminal charges, but he is also facing a civil suit by Apple over the kickbacks he received. As for the suppliers involved, nothing has been reviled except for their countries of origin which include, China, Taiwan, South Korea, and Singapore. Devine is set to appear in federal court sometime today in San Jose, California.

So, if Apple had any remaining trust in iPhone/iPod peripheral manufactures, this just zapped the rest of it.

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