Ex-Apple manager pleads guilty to kickback scheme

An ex Apple employee has pleaded guilty to a number of criminal counts after he was accused of taking kickbacks from Asian suppliers in exchange for the iPhone makers secrets.

According to Reuters, Paul Devine worked in the iPhone division as a global supply manager from 2005 until 2010, he was accused of using his position to pass on many of Apple’s secrets in the hope of helping some of the Asian suppliers negotiate better contracts with the company for monetary gain.

It was only when Apple launched an internal investigation in April last year that evidence started to mount against Devine. He was finally arrested in August 2010 when the company found a number of e-mails that had passed between Devine and the Asian suppliers on his Apple-owned laptop.

Yesterday Devine pleaded guilty to wire fraud, conspiracy and money laundering, he has also had to forfeit $2.28 million worth of property and money according to prosecutors. Devine admitted that he had been transferring the money he had been making from the crime between US and overseas banks as a means to hide the payments that had been made to him.

Devine is currently free on bail, but could now face a long 20-year jail term and a huge fine when he is sentenced on June 6.

Image Source: SMSEO

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25 Comments

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(Spork) said,
e-mails that had passed between Devine and the Asian suppliers on his Apple-owned laptop.


Dumb ass

Exactly why I won't buy anything made by Apple only dumbasses work there .

didn't know wire fraud was, "The involvement of electronic communications adds to the severity of the penalty, so that it is greater than the penalty for fraud that is otherwise identical except for the non-involvement of electronic communications. "
I thought it involved stealing the electronic communication service. So, the scam artists that call you all commit wire fraud, as well as that Nigerian Prince guy...

"Whoever, having devised or intending to devise any scheme or artifice to defraud, or for obtaining money or property by means of false or fraudulent pretenses, representations, or promises, transmits or causes to be transmitted by means of wire, radio, or television communication in interstate or foreign commerce, any writings, signs, signals, pictures, or sounds for the purpose of executing such scheme or artifice, shall be fined under this title or imprisoned not more than 20 years, or both. If the violation affects a financial institution, such person shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both."

all sourced from wikipedia. http://en.wikipedia.org/wiki/Wire_fraud

You would think he would at least use those disposable cell phones rather than his COMPANY OWNED laptop. idiot.

neufuse said,
why do people think they would get away with this stuff? They always get caught somehow

Even better conducting it on your work laptop

neufuse said,
why do people think they would get away with this stuff? They always get caught somehow

Yep they get caught if they are employee. But if they are founder its just part of business as usual. Or should I say politics. Kind of why Bin Lady never got caught. Its good for the oil business. Governments like the tax it brings on high priced goods.

neufuse said,
why do people think they would get away with this stuff? They always get caught somehow

Are you kidding me? You only hear about the ones that get caught - how many others just didn't get caught? I'm sure they're plenty more out there than you think.

Tha Bloo Monkee said,
Are you kidding me? You only hear about the ones that get caught - how many others just didn't get caught? I'm sure they're plenty more out there than you think.

...yet

neufuse said,
why do people think they would get away with this stuff? They always get caught somehow

Because greed, lust and envy overcome their sense of logic and honesty.

De.Bug said,
Proof that Apple is not perfect.

If this is the first piece of proof for you, then you must not pay attention much.

De.Bug said,
Proof that Apple is not perfect.

That is no proof. My apple is perfect! People aren't perfect. Oh apple is perfect except that some one all ways takes a bite out of the logo. But that is something I can live with. I just got to hold it right!

enocheed said,

That is no proof. My apple is perfect! People aren't perfect. Oh apple is perfect except that some one all ways takes a bite out of the logo. But that is something I can live with. I just got to hold it right!

How a imperfect team can build a perfect machine?. Simple, they can't. The rest is fixed by the marketing team and the power of magic and unicorns.