Allegedly sold confidential specifications to Asian suppliers

Apple manager arrested in supplier kickback probe

An employee of Apple has been arrested in an investigation into kickbacks from six Asian suppliers worth around $1 million.

The Wall Street Journal reports that US taxation body the Internal Revenue Service had confirmed the arrest was the result of a joint investigation with the FBI. Paul Shin Devine is a global supply manager at Apple and thought to be responsible for lucrative supply contracts for components used in the construction of various Apple products.

"Devine came up with a scheme in which he supplied companies such as Cresyn Co. in South Korea, Kaedar Electronics Co. in China and Jin Li Mould Manufacturing Pte. Ltd. in Singapore with confidential information that would let them negotiate favorable contracts with Apple," the WSJ report said.

The scheme involved Devine providing confidential specifications which allowed the Asian suppliers to win the lucrative contracts. In return Devine demanded payments into accounts in his wife’s name.

Devine has been charged with wire fraud, money laundering and unlawful monetary transactions while Apple also filed a civil suit against Devine, alleging fraud. 

An Apple representative said, “Apple is committed to the highest ethical standards in the way we do business. It has zero tolerance for dishonest behavior inside or outside of the Company”.

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