Former Apple employee convicted of money laundering, wire fraud
Former Apple employee Paul Devine pleaded guilty to 23 charges of wire fraud, conspiracy and money laundering following his arrest last August. Devine, a global supply manager, was accused of accepting kickbacks from six Asian suppliers. In return for cash and gifts, he supplied these suppliers with confidential information that gave them an advantage when negotiating lucrative contracts with Apple.
Devine allegedly collected over US$1 million in this kickback scheme and deposited the money in various foreign and US banks using accounts setup in his name and his wife's name. Varying amounts of cash were also stored in safety deposit boxes and hidden in shoe boxes in his house. His activities reportedly cost Apple more than $2.4 million in losses.
Devine is currently on pretrial release and will return to court on June 6 for his sentencing. He faces up to 20 years in prison for the wire fraud and money laundering charges. He also agreed to forfeit $2.28 million in cash and gifts worth $10,000, most of which were obtained as part of his elaborate kickback scheme. When the criminal trial ends, Devine still faces a civil trial filed by Apple.
