South Korea-based Cresyn Co., a supplier of earphones for the iPod, has said that former Apple global supply manager Paul Shin Devine was paid for what was thought to be consulting work. “It was our understanding the contract was with Apple since we knew he was an Apple employee,” Kim Chang Jun, a spokesman for the Seoul-based company, told Bloomberg.
“Apple was specified in the contract, and we believed it, so we sent the money.” Devine, along with associate Andrew Ang of Singapore, was recently indicted for wire fraud, money laundering, and kickbacks. Devine allegedly shared confidential information from Apple with suppliers of iPod and iPhone accessories, which then used the information to negotiate favorable contracts with Apple.
Reuters reports that in addition to Cresyn, Apple claims that Devine was also in contact with Singapore’s Glocom/Lateral Solutions, JLJ Holdings, and Fastening Technologies, as well as Taiwan’s Nishoku Technology and Pegatron. Said Jonathan Chang, a deputy spokesman for Pegatron, “We are investigating the case now and feel sorry about this.” Pegatron owns Kaeder Electronics, a maker of third-party plastic cases for the iPhone, iPod, and other devices, which was named in the kickback charges but is not a direct Apple supplier.