Apple supply manager arrested for wire fraud, money laundering
By Sean Hollister 
posted August 14th 2010 11:33AM
posted August 14th 2010 11:33AM
Ever wonder why -- after years of secrecy -- camera-ready iPod cases began rolling out? The answer could possibly be Apple supply manager Paul Shin Devine, who was just fingered by the FBI and IRS as a fraudulent, money laundering mole. Devine was arrested Friday for allegedly receiving kickbacks from six accessory suppliers in exchange for confidential information, which apparently gave them an edge in negotiating Apple contracts. "The alleged scheme used an elaborate chain of U.S. and foreign bank accounts and one front company to receive payments," reports the San Jose Mercury News, "and code words like 'sample' were used to refer to the payments so that Apple co-workers wouldn't become suspicious." Though we're not yet sure what specific confidential information might have been passed along and we doubt the indictment will say, a separate civil suit filed by Apple claims Devine accepted over $1 million in "payments, kickbacks and bribes" over the course of several years.
Damn. It just got real.
@redhineymonkey Apple's having a rough couple of weeks.
@redhineymonkey
Must've "magically" ended up in his account...
@redhineymonkey I don't know if anyone realizes it, but this may not reflect well on the company.
@redhineymonkey
I say, Hang 'em Hight!
@redhineymonkey
Would someone please just tell Apple to give us back our standard connectors! Consumers would save a bundle and problems like this would go away.
@chrismgallen
There's no app for that.
@redhineymonkey i lol'ed so hard when i seen that lol....
@wemustcontrolpeople
a man taking bribes from accessory manufactures to leak product info has little bearing on making apple look bad.
@wemustcontrolpeople
I think it will reflect better then the CEO with a sexual harassment investigation
@redhineymonkey Only 1 million? Thinking too small.
@chrismgallen
The money was just resting in his account.
@redhineymonkey
Pretty sure he used an app for that.
@chrismgallen It's a new "revolutionary" way of doing business...
@redhineymonkey
Looks like someone dun goofed up hard, hope it was worth it because your career/life is screwed.
@vpuik
Since Engadget publishes a bunch of stuff on next generation iPod/iPhone/iWhatever cases that were likely linked to this guys illicit actions, it's somewhat ironic that they are now reporting on the "capture" of the source to their own material.
If it means less Engadget postings about some crappy iPod case though, it’s a net win!
@werty1432k How is this rough for Apple? It's not like Apple was charged. Apple was actually the victim here.
@NCase just don't launder that way - Jobs
@redhineymonkey
Rack up another first for Apple.
@werty1432k You can say that again...
@werty1432k Rough couple of months.
@Sled
Hp? Who got $40 million in severence pay.
@NCase Sure there is, iWire and iLaunder.
@chrismgallen
Dude - that totally just made my day!
@redhineymonkey Well I think the worst part of this is that accessories suppliers where using this to get better and cheaper contracts out of Apple now with this guy out the way I can see everything getting a whole lot more expensive.
@wemustcontrolpeople
Whatever, I +1'd you. I agree.
@redhineymonkey
I demand he serve jail time with a sexually deprived inmate for giving away Apple secrets. I don't care about the wire fraud and money laundering, but giving away Apple secrets almost cries out for a death sentence or the very least, painful torture.
@Processing
+1 for you good sir hahaha
@Canucker who ever said this guy had anything to do with engadget? You are reading too far into it. Bottom line is engadget reports the news as it happens. Can't handle it? go elsewhere
@redhineymonkey He blew it!
@Exile
Yeah, if he only got a lousy million, he blew it!
@redhineymonkey
I find it hilarious that its a PC in the picture
@redhineymonkey
Now we know why Steve dropped his pursuit of Gizmodo... he had bigger fish to fry.
too greedy or wasn't paid enough?
@Killing Time Yeah, I realized this after I posted it, but you can't remove comments on engadget.
@Killing Time Yeah, I realized this after I posted it, but you can't remove comments on engadget.
@redhineymonkey I guess you could say he's a bad "Apple". HAHAHAHA... -.-
@Anay
That was so bad it s good!
Have a cookie.
@ResidentEVO Yeah because Apple is the only company that has a scumbag as an employee and didn't know it right?
@redhineymonkey says a lot really huh?
http://www.lolinterwebz.co.uk/
@redhineymonkey
Steve Jobs: YOU'RE STEALING FROM US!!
(http://www.youtube.com/watch?v=zLZLl3eHdzQ#t=42s) (starts from 0:42)
@redhineymonkey Further reports indicate he was leaking information to Jason Chen. But only made $5000 off of that deal.
"Paul Shin Devine, who was just fingered by the FBI and IRS"
Sounds kinky.
@Ambient80
Too bad his name wasn't Freddy.
@Mr Blurrycam Haha, indeed!
Also, your name and avatar are top-notch, sir.
@bufbarnaby
I need a lung transplant because I just blew one out! RIM..fingered..phew!!
Corruption? Apple? Who would have thought...
@TheCake
"accepted over $1 million in "payments, kickbacks and bribes" over the course of several years."
Ah, a textbook capitalist! Likely has ties to Halliburton
@rcavaretti
What? Bribes and kickbacks are not capitalism, they are crime, and in fact are more common in non-market economies than in capitalist ones.
Now go back to the Soviet Union where you came from. Oh yeah, it no longer exists...
@TheCake Ya and steve jobs is the devil right? Apple is secrectly attempting to take over the world. Oh, wait a minute. No, that's google.