Former Apple employee admits taking kickbacks

Paul Devine pleads guilty to wire fraud, conspiracy, money laundering while at Apple

Tags: Apple IncorporatedFraudUSA
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Former Apple employee admits taking kickbacks Former Apple Employee, Paul Devine, has admitted to committing wire fraud, conspiracy and laundering money while still employed at the company.
By  Georgina Enzer Published  March 1, 2011

A former Apple employee, accused of taking kickbacks from Asian suppliers, has pleaded guilty to multiple criminal counts, according to Reuters.

Former Apple global supply manager, Paul Devine, was accused of helping suppliers to negotiate favourable contracts with Apple, by using his position to pass on confidential information to them.

An internal investigation was opened by Apple last year into the allegations and the company found a series of emails between Devine and suppliers, Apple then filed a civil case against him.

US prosecutors obtained a separate criminal indictment on 23 counts in August.

Devine, in federal court in San Jose, pleaded guilty this week to wire fraud, conspiracy and money laundering.

The former Apple employee also agreed to forfeit about $2.28 million in money and property.

"Mr Devine is a good man who made a mistake, and now he's trying to make amends," his attorney Raphael Goldman said.

When Apple filed the case against Devine it said it had "zero tolerance" for dishonest behaviour inside or outside the company.

Its civil lawsuit has been on hold pending the outcome of the criminal prosecution.

Devine's sentencing is scheduled for June 6 and he faces a maximum prison term of 20 years on the wire fraud and money laundering counts.

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