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Apple manager arrested over $1 million in kickbacks
- — 17 August, 2010 05:01
An Apple manager with responsibilities for the company's contract manufacturing in Asia was arrested Friday and charged with accepting kickbacks.
Charges were filed against global supply manager Paul Shim Devine last Wednesday in U.S. District Court for the Northern District of California, according to court documents. Several news reports said Devine was arrested Friday.
Devine was accused of accepting US$1 million in kickbacks from half a dozen Asian suppliers of iPhone and iPod accessories in a federal indictment and a civil suit, the San Jose Mercury News reported. Devine allegedly was paid for sharing confidential Apple information with contractors that helped them win Apple business on favorable terms, according to court documents.
Devine made a brief appearance in court in San Jose today, where his lawyer, Raphael Goldman, indicated that he plans to plead not guilty. He remains in custody pending a detention hearing on August 18. US attorney Michelle Kane said that Devine is a flight risk and should not be granted bail.
Devine transferred nearly $537,000 between two JP Morgan Chase bank accounts in May, according to an indictment released Monday.
Andrew Ang, an employee of a Singapore supplier, was also named in the indictment and faces the same charges as Devine. Ang was identified as a former employee of Jin Li Mould Manufacturing in news reports.
From February 2007 until his arrest, Devine allegedly received payments from six suppliers based on a percentage of business they won with Apple, according to the indictment.
Devine and Ang are charged with 15 counts of wire fraud, five counts of money laundering, one count of wire fraud conspiracy and one count of monetary transactions with criminally derived property, according to court documents.
An attorney appointment hearing for Devine is scheduled for Monday.
The Wall Street Journal reported that Devine gave confidential information to companies like Cresyn in South Korea, Kaedar Electronics in China and Jin Li Mould.
Meanwhile, Apple Friday sued Devine in a case in U.S. District Court in San Jose, the Journal said.