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Apple manager held on kickback charges

The Mercury News is reporting that Sunnyvale, CA resident Paul Shin Devine, a 37-year-old Apple manager in global supply, has been arrested and charged with accepting kickbacks from Asian suppliers. In return, he provided confidential information that allowed these suppliers to negotiate more advantageous contracts with Apple.

Devine, and his alleged co-conspirator Andrew Ang of Singapore, have been indicted by a federal grand jury on 23 counts including wire fraud, money laundering and other charges. Devine is being held by the US Marshals Service.

Apple's statement on the matter comes from PR lead Steve Dowling: "Apple is committed to the highest ethical standards in the way we do business... We have zero tolerance for dishonest behavior inside or outside the company."

Devine is alleged to have collected over $1 million in funds from various suppliers in China, Taiwan, Singapore and South Korea during the scheme; the companies involved have not yet been named publicly. Devine opened bank accounts in several countries in his wife's name to disguise the bribes.

[via Apple 2.0]


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The Mercury News is reporting that Sunnyvale, CA resident Paul Shin Devine, a 37-year-old Apple manager in global supply, has been arrested...
 

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Dave W

Based on the amount he received he is probably going to camp Fed for at least 5 years. I'm not sure what the guidelines are but when the Feds have a case its very, very difficult to wiggle out of it.

August 15 2010 at 12:52 AM Report abuse rate up rate down Reply
TheCastro

His defense is simple, he was being paid as a consultant to tell these companies how much the iphone was really worth so they could get paid more fairly. We do the same crap all the time. I don't feel bad for any large corporation, EVER. They're all out to screw you. Ask any real old Apple Computer buyer, a lot of them feel Apple doesn't care about them, and it doesn't. Like any company trying to make money with expensive high end products they shoot for quality, not like they think oh man I hope Mike or Susan likes our new phone.

This guy was just getting his, $1,000,000 is a lot to turn down. But that's also only the money they know about and not any other money he took which might be hidden better, or stocks, or gifts.

There's a lot more to this story, and those two probably aren't the only ones.

Now I agree with a lot of you that it was wrong for him to do this, and I wouldn't have. I have personal integrity, I would have reported this to top executives, because I wouldn't want a company that I work for, as long as they treat me right and aren't an evil company, to do business with companies willing to do this type of thing.

August 14 2010 at 6:57 PM Report abuse rate up rate down Reply
digitalsedition

This was sooooo stupid for him to do. Doesn't make any sense whatsoever for him to have done this because the company has such high visibility and information leaks are happening all the time. If you're going to do a crime, at least be smarter about the circumstances under which you try to carry it out.

August 14 2010 at 2:28 PM Report abuse rate up rate down Reply
1 reply to digitalsedition's comment
Rego

Whether it was also stupid is somewhat irrelevant. It was plainly wrong; whether it was a large high profile company or a small obscure company!

Again-you either get (and accept) the concept or you don't!

August 14 2010 at 3:39 PM Report abuse rate up rate down Reply
adam.plante

I'd have done the same. Too bad he got caught.

August 14 2010 at 2:04 PM Report abuse rate up rate down Reply
1 reply to adam.plante's comment
Rego

Well at least your potential future employers, friends, family and associatates etc have been warned that you are not trustworthy-if they read TUAW!

August 14 2010 at 3:32 PM Report abuse rate up rate down Reply
nxiv

he did his job wrong.

August 14 2010 at 12:18 PM Report abuse rate up rate down Reply
mark

I'm sure his job compensated him so poorly too. Enjoy prison and your criminal record.

August 14 2010 at 12:08 PM Report abuse rate up rate down Reply
Robert Paege

Given the amount of money involved it's not surprising he succumbed to temptation, and I dare say that the holier-than-thou types who rail against him need take a long, hard look at themselves before casting the first stone.

Apple needs to rework it's supply system to rotate managers so that no others are tempted by such huge illegal rewards.

August 14 2010 at 11:38 AM Report abuse rate up rate down Reply
1 reply to Robert Paege's comment
Rego

If you need to take "a long hard look" to see if you can maintain and honor the integrity of the position at, Apple you are not the right person for the job!

You either get "the concept" or you don't!

August 14 2010 at 3:27 PM Report abuse rate up rate down Reply
mkvirt

traditionally asian managers would do the honorable thing when offenses against the public or corporate trust were made public.their instrument of choice was usually a special purpose knife. in this case, maybe it should be a 'Droid? "Seppukoid"?

August 14 2010 at 10:52 AM Report abuse rate up rate down Reply
kakapo

I read a book (sci-fi), a long time ago, where the perpetrator of a crime had the crime tattooed on their forehead.

Then they were released into society. People walked away and rejected them for every thing. No support what so ever.

Stealing from the company who provides your ability to enjoy life is heinous. I hope Apple presses the full extent of the charges and finds other suppliers to fulfil their needs. These two guys are the tip of this iceberg!

I have only one word for them: phuquewads...

August 14 2010 at 10:20 AM Report abuse rate up rate down Reply
Roberto

Out with everyone who diminishes product quality and company profitability!

August 14 2010 at 10:06 AM Report abuse rate up rate down Reply
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