iLounge

By Charles Starrett

Senior Editor, iLounge
Published: Monday, August 16, 2010
News Category: Apple, iPhone, iPod

An Apple manager has been arrested and accused of accepting kickback payments from iPod and iPhone accessory suppliers. The San Jose Mercury News reports that Paul Shin Devine, a global supply manager with Apple, along with Andrew Ang of Singapore, were named in a grand jury indictment for wire fraud, money laundering, and kickbacks. According to the report, the scheme saw Devine share confidential information from Apple with the suppliers, which used the information to negotiate favorable contracts with Apple. In return, the suppliers gave Devine monetary kickbacks, which were routed through U.S. and foreign bank accounts, plus a front company. Devine is currently being held by the U.S. Marshals Service; Apple has filed a separate civil suit against Devine, claiming he received more than $1 million in “payments, kickbacks and bribes” over several years. “Apple is committed to the highest ethical standards in the way we do business,” said Apple spokesman Steve Dowling. “We have zero tolerance for dishonest behavior inside or outside the company.”

Update: According to Macworld UK, China’s Kaeder Electronics, South Korea’s Cresyn, and Singapore’s Jin Li Mould Manufacturing were all involved in the kickback scheme, along with three other suppliers; none of the three named suppliers has yet commented on the case.