Apple Employee Arrested for Kickbacks and Racketeering

One would think that Apple pays its employees well, but then one could always do with more – According to Wirl News Network, this must have been the sentiments of Paul Devine, one of Apple’s global supply managers, who was busted by the FBI for allegedly engaging in kickbacks and money laundering. One more principal, Andrew Ang, an employee of one of Apple’s supplier, was also arrested in the sting. This sting was a joint operation between the FBI and the IRS; the FBI has also confirmed that Mr. Devine, who is yet to procure legal counsel, is being held by the Marshals at an undisclosed location.

Wallstreet Journal reports, that Apple also named Devine in a civil suit filed Friday in U.S. District Court in San Jose, Calif., which includes allegations of fraud and violations of racketeering laws. He is scheduled to make a court appearance Monday.

The particulars of the sting pursuant the indictment include: Mr. Devine supplying companies like Cresyn Co. Ltd. (South Korea), Kaedar Electronics Co. Ltd. (China) and Jin Li Mould Manufacturing Pte. Ltd. (Singapore) with confidential information, which enabled them to negotiate favorable contracts with Apple. Apple, via a spokesperson, said, "Apple is committed to the highest ethical standards in the way we do business," The spokesperson also added that Apple has "zero tolerance for dishonest behavior inside or outside of the company."

For a company that has a reputation for being on the ball, little incidents have been adding up and affecting Apple’s pristine rep: from the firing of the big wig in charge of the division over that handled the smart phone antenna problem; to the recent problems CEO and co-founder, Steve Jobs, had during Apple’s vaunted presentation; and now this arrest of one of its employees on alleged money laundering and kickbacks charges.

Mr. Devine hasn't had an attorney and the fact that he is being held at undisclosed location by the Marshals makes it difficult to know what he has to say concerning these charges. It doesn't seems like this was a wide spread scheme because the FBI only arrested one other principal (Andrew Ang). I am surprised that the scheme like the one that Mr. Devine is alleged to have taken part in does not occur more often due to the popularity of Apple's products here and abroad.

Via wirl.net and WSJ.com.