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Innovation

Apple manager accused of $1m kickback scheme

Apple iPod manager Paul Shin Devine has appeared in court accused of accepting kickbacks to the value of $1m from suppliers in return for confidential information
Written by Tom Espiner, Contributor on

A manager at Apple has been arrested on suspicion of accepting kickbacks worth $1m.

Paul Shin Devine was indicted on Friday on suspicion of obtaining confidential Apple information which he transmitted to iPod and iPhone accessory suppliers, according to the San Jose Mercury News. In return, Devine allegedly received kickbacks, which he allegedly shared with Andrew Ang of Singapore, an employee of one of the suppliers.

"Apple is committed to the highest ethical standards in the way we do business," Apple spokesman Steve Dowling said in a statement. "We have zero tolerance for dishonest behaviour inside or outside the company."

According to the indictment, the information allegedly shared by Devine included product specifications, sales forecasts and details of competitors' bids.

The six suppliers allegedly involved were not named in a federal court indictment, which the US District Court in San Jose ordered to be unsealed on 13 August, according to a court docket. However, the Wall Street Journal named three of the suppliers allegedly involved as China's Kaedar Electronics, South Korea's Cresyn, and Singapore's Jin Li Mould Manufacturing.

Devine was remanded in custody until 16 August, when he will appear before Howard R. Lloyd. The case number is CR10-00603JW. Apple is suing Devine in a separate civil case for the alleged kickback amount, according to the San Jose Mercury News.

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