The Mercury News is reporting that Sunnyvale, CA resident Paul Shin Devine, a 37-year-old Apple manager in global supply, has been arrested and charged with accepting kickbacks from Asian suppliers. In return, he provided confidential information that allowed these suppliers to negotiate more advantageous contracts with Apple.
Devine, and his alleged co-conspirator Andrew Ang of Singapore, have been indicted by a federal grand jury on 23 counts including wire fraud, money laundering and other charges. Devine is being held by the US Marshals Service.
Apple's statement on the matter comes from PR lead Steve Dowling: "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 is alleged to have collected over $1 million in funds from various suppliers in China, Taiwan, Singapore and South Korea during the scheme; the companies involved have not yet been named publicly. Devine opened bank accounts in several countries in his wife's name to disguise the bribes.
[via Apple 2.0]