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Former Global Operations manager Paul Devine sentenced to one year in prison for selling Apple secrets
Former Apple Global Operations manager Paul Devine was sentenced last week to one year in prison following his guilty plea on charges of money laundering, conspiracy and wire fraud. He also must repay $4.5 million for crimes against his employer Apple. In 2010, Devine was arrested and subsequently pleaded guilty to fraud, conspiracy and money laundering in a scheme that benefited Apple's Asian suppliers and manufacturers. From 2007 until 2010, Devine and partner Andrew Ang received lucrative kickbacks in exchange for confidential internal Apple information such as product specifications and pricing. This information allowed the suppliers to negotiate more favorable contracts with Apple. Devine will begin serving his sentence in February of 2015. An indictment against Ang in the US is still pending while Chua Kim Guan faces charges in his home country of Singapore.
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.
Apple manager held on kickback charges
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]
