A mid-level Apple manager, Paul Shin Devine, was arrested late last week for allegedly accepting kickbacks totaling over $1 million from six Asian iPhone and iPod accessory suppliers, reports the San Jose Mercury News.
Devine and Andrew Ang, who is employed with an Apple supplier, were charged with "wire fraud, money laundering and unlawful monetary transactions," according to the Wall Street Journal.
The San Jose Mercury News describes the global supply manager's tactics:
The indictment describes a scheme in which Devine used his position at Apple to obtain confidential information, which he transmitted to Apple suppliers, including [Andrew] Ang. In return, the suppliers and manufacturers paid Devine kickbacks, which he shared with Ang. The information enabled the suppliers to negotiate favorable contracts with Apple, according to the indictment.
Apple is separately bringing a civil suit against Devine that accuses the manager of violating racketeering laws, accepting bribes and kickbacks, and committing fraud. Devine reportedly worked at Apple beginning in July 2005.
Apple spokesman Steve Dowling said in a statement: "Apple is committed to the highest ethical standards in the way we do business," adding, "We have zero tolerance for dishonest behavior inside or outside the company."
(via San Jose Mercury News)