The Wall Street Journal is reporting that Pegatron, a Taiwanese manufacturer, has confirmed that their subsidiary, Kaedar Electronics, did pay kickbacks to an “intermediate trading company” in an effort to gain contracts with Apple. All of this taking place between 2005 and 2008. They however, couldn’t confirm whether Paul Devine, the Apple manager that was […]
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Apple Manufacturing Partner Confirms That it Payed Kickbacks for Apple Orders

The Wall Street Journal is reporting that Pegatron, a Taiwanese manufacturer, has confirmed that their subsidiary, Kaedar Electronics, did pay kickbacks to an “intermediate trading company” in an effort to gain contracts with Apple. All of this taking place between 2005 and 2008. They however, couldn’t confirm whether Paul Devine, the Apple manager that was arrested last week, was the recipient of the money.

Paul Shin Devine, a global supply manager at Apple, was arrested Friday on charges that he received some $1 million in kickbacks from six Asian suppliers. In a federal grand-jury indictment in the U.S. outlining offenses that include unlawful monetary transactions, Kaedar, along with five other companies, were said to have paid kickbacks to Mr. Devine for receiving confidential information that would let the companies negotiate favorable contracts with Apple.

Pegatron currently manufactures Apple products such as the iPod shuffle, while Kaedar supplies Apple with iPod packaging since 2005.

With all of that said, Reuters is reporting that Paul Devine has pleaded “not guilty” to the criminal charges that were filed against him. He appeared in court yesterday.

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