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Former Apple manager accused of hiding $125k in shoeboxes

by Sang Tang Aug 24th 2010 at 11:00PM

Back when I was a kid, I kept my most valuable possessions, my baseball and basketball card collection, in a shoe box. Apparently, so too did former Apple employee Paul Devine. Devine is accused of wire fraud and conspiracy on the basis that he collected more than $2.5 million in kickbacks from Apple's suppliers. And during their investigation, officials found $125,000 stored away in shoe boxes at his home, as well as more than $20,000 worth of foreign currency. Prosecutors also allege that Devine may have other sources of cash.

In Devine's position as a global supply manager at Apple, it's alleged that he was privy to information such as projected sales of Apple products, the cost to manufacture an Apple product, and the prices of bids from competing suppliers. Prosecutors allege that he leveraged this knowledge by providing it to those in the supply chain in return for kickbacks.

The allegations against Devine are noteworthy, given Apple's penchant for secrecy. For instance, according to reports, Apple employees must test unreleased products in secret rooms under covered workstations, and are not allowed to follow other employees too closely.

[via Macworld]



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Back when I was a kid, I kept my most valuable possessions, my baseball and basketball card collection, in a shoe box. Apparently, so too...
 

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13 Comments

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glad

It's called corruption and is well practiced around the world!!

August 25 2010 at 2:43 PM Report abuse rate up rate down Reply
enterprise931

I always loved john's music! john, move out of the 70s.if it wasn't for itunes and ipods,you probably wouldn't be selling anything today.

August 25 2010 at 9:38 AM Report abuse rate up rate down Reply
enterprise931

if his shoeboxes were like the doctors tardis,he could have hidden apple stores in the boxes!

August 25 2010 at 9:37 AM Report abuse rate up rate down Reply
jsantal

What's wrong with these people - global supply manager at Apple should be making a lot more than is needed to make the ends meet without having to resort to any sort of shoeboxery.

August 25 2010 at 7:31 AM Report abuse rate up rate down Reply
1 reply to jsantal's comment
Steve

You're speculating that the reason he did this is that he wasn't making enough money? I have bad news for you. Some of the richest people in the world are involved in some of the worst criminal activities. It has nothing to do with how much money they're making.

August 25 2010 at 10:45 AM Report abuse rate up rate down Reply
Lee

So, I'm not sure exactly what this guy was doing? Was it giving info about the products and bids do other firms could be more competitive and potentially get contracts selling parts to Apple? Or was it giving info about upcoming Apple products so they could make accessories and add ons?

If it's the latter, is it possible he was performing a needed service, at least as far as getting accessories out in a timely manner? Are we now going to have to wait longer for cases after new iPod touches and iPhones are released?

August 25 2010 at 4:12 AM Report abuse rate up rate down Reply
1 reply to Lee's comment
Brett

It was the former. He was giving other companies inside information to help them negotiate better deals as suppliers to Apple. Not case suppliers to customers, but hardware suppliers to Apple itself.

August 25 2010 at 10:11 AM Report abuse rate up rate down Reply
macserv

"Prosecutors allege that he leveraged this knowledge by providing it to those in the supply chain in return for kickbacks."

GAHHH, STOP IT. He didn't "leverage" it. He "exploited" it, "capitalized on" it, "utilized" it, or maybe, God forbid, he just "used" the knowledge to his benefit.

"Leverage", as a verb, does have obscure meaning; that is, to give something or someone leverage. Devine leveraged the competing suppliers by providing them with the confidential information.

Best to just avoid it as a verb altogether, unless you're talking about financial situations, like a "leveraged buyout."

August 25 2010 at 1:28 AM Report abuse rate up rate down Reply
Buzz

It gets worse: They found a treasure trove in his safety-deposit boxes at several banks all around the world. Those were full of shoes.

August 25 2010 at 12:34 AM Report abuse rate up rate down Reply
1 reply to Buzz's comment
gg

Lol.

August 25 2010 at 11:47 AM Report abuse rate up rate down Reply
Mr. Brown

Is this guy a member of the "Bill Jefferson School for Hiding Money"?

August 25 2010 at 12:09 AM Report abuse rate up rate down Reply
Dan Willis

Headline writing 101.

Paul Devine was not accused of hiding money in a shoebox - that's not illegal. He was accused of fraud.

So, a headline about this story should read; Former Apple Manager Accused of Fraud, Hides Money in Shoeboxes.

August 24 2010 at 11:47 PM Report abuse rate up rate down Reply
1 reply to Dan Willis's comment
William

Thanks for pointing that out; I was just about to comment on that. When I initially read the headline, I was really confused as to why anyone would be accused of hiding money in shoeboxes.

August 25 2010 at 11:23 AM Report abuse rate up rate down Reply
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