A mid-level Apple manager faces twenty-three counts of a federal grand jury indictment alleging that the 37-year-old Paul Shin Devine, a global supply manager, is guilty of wire fraud, money laundering, and kickbacks related to his position at the company. Andrew Ang, of Singapore, faces the same charges as well.
And if that's not bad enough, Apple itself has filed a separate civil suit against Devine, alleging that the Sunnyvale, CA-based (former) employee accepted more than $1 million in bribes and kickbacks from countries including China, South Korea, Taiwan, and Singapore.
According to the indictment, Devine allegedly used his position at Apple to acquire various bits of confidential information about the company. He would turn around and sell this information to more than a half-dozen Apple suppliers—including the aforementioned Ang—and both would receive payments for their efforts. Using the confidential knowledge, said suppliers would be able to better position themselves to bid for and receive Apple contracts.
The San Jose Mercury News reports that the companies in the indictment remained unnamed, but they're said to be involved in supplying materials for Apple's iPods and iPhones.
"Apple is committed to the highest ethical standards in the way we do business," said Apple spokesman Steve Dowling in a statement. "We have zero tolerance for dishonest behavior inside or outside the company."
The somewhat-complicated scheme, reads the indictment, involved a number of U.S. and foreign bank accounts, as well as the falsified company "CPK Engineering," to process the payments. Devine allegedly attempted to conceal the money transfers using code words as to not clue his employer into what was actually transpiring, and would even go so far as to open the foreign bank accounts in his wife's name.
The Internal Revenue Service reports that Devine is currently in the custody of U.S. Marshals, awaiting a 1:30 p.m. court appearance this coming Monday in the U.S. Northern District Court in San Jose.