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Businesses Crime Iphone Apple

Apple Manager Arrested In Kickback Scheme 218

Posted by timothy
from the market-distortion-field dept.
pickens writes "A midlevel Apple manager was arrested Friday and accused of accepting more than $1 million in kickbacks from half a dozen Asian suppliers of iPhone and iPod accessories in a federal indictment unsealed and a separate civil suit. Paul Shin Devine, a global supply manager, and Andrew Ang, of Singapore, were named in a 23-count federal grand jury indictment for wire fraud, money laundering and kickbacks. 'Apple is committed to the highest ethical standards in the way we do business,' Apple spokesman Steve Dowling said in a statement. 'We have zero tolerance for dishonest behavior inside or outside the company.' The alleged scheme used an elaborate chain of US and foreign bank accounts and one front company to receive payments, the indictment said, and code words like 'sample' were used to refer to the payments so that Apple co-workers wouldn't become suspicious."
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Apple Manager Arrested In Kickback Scheme

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  • by Anonymous Coward on Saturday August 14, 2010 @09:48PM (#33254488)

    'Apple is committed to the highest ethical standards in the way we do business,' . That's why we manufacture in China.

  • by rtaylor (70602) on Saturday August 14, 2010 @09:57PM (#33254556) Homepage

    There are more ethical business people in China than the United States. There's lots more unethical ones too.

  • by rotide (1015173) on Saturday August 14, 2010 @09:57PM (#33254564)
    Maybe the _whole reason_ it's cheaper to do so? Because it's basically akin to slave labor? Shit doesn't get made for pennies when you have a well paid and cared for workforce but it's easy to ignore the realities of really, REALLY, sub par working conditions when you get a toy to play with after you dropped some of your disposable income, isn't it?
  • Not with Apple (Score:4, Insightful)

    by jesseck (942036) on Saturday August 14, 2010 @09:58PM (#33254566)
    We're talking about the organization that got the SWAT team to take back a stolen iPhone... if they can do that, the fines will probably exceed damages. I can't get an school police officer to look at me with a straight face when I tell them my daughter's Hannah Montana Disney MP3 player was taken on the playground.
  • by sznupi (719324) on Saturday August 14, 2010 @10:01PM (#33254590) Homepage

    Where there is excessive control, there's plenty of place for corruption/etc.

  • by haystor (102186) on Saturday August 14, 2010 @10:04PM (#33254614)

    'We have zero tolerance for dishonest behavior inside or outside the company.'

    *cough*
    back dated options
    *cough*

  • by Joe The Dragon (967727) on Saturday August 14, 2010 @10:04PM (#33254618)

    but no zero tolerance for Foxconn?

  • by omar.sahal (687649) on Saturday August 14, 2010 @10:21PM (#33254684) Homepage Journal

    most businesses would probably do the same damn thing.

    What give out confidential information about there own company so their suppliers could get better deals. Or do you mean the suppliers paying the bribes for inside information, that would make more sense; you where't clear.

  • by Ilgaz (86384) on Saturday August 14, 2010 @10:34PM (#33254738) Homepage

    Dear AC,

    It is your type who goes to newegg.com, set the sorting to cheapest to most expensive and pick the cheapest one.

    Apple could be hypocrite but people buying things who are just 10 dollars cheaper and bitching/whining as AC or some chit chat at Starbucks are more disgusting.

  • Re:Not with Apple (Score:1, Insightful)

    by Anonymous Coward on Saturday August 14, 2010 @10:42PM (#33254772)
    If you told him the device was worth millions of dollars and he believed you, his outlook would change considerably. An officer isn't going to waste time retrieving a $50 item when his costs to the public are $100/hr or more (salary, vehicle, management, etc). Besides, theft is something you have to open a case with the police department for, unless the crime is currently being committed.
  • by WindBourne (631190) on Saturday August 14, 2010 @10:57PM (#33254822) Journal
    And yet, places like Germany in which they make MORE per hour, work less, have similar productivity are getting jobs there. Hmmm. I wonder why? Because the companies are about where they work at?
  • by jcr (53032) <jcr.mac@com> on Saturday August 14, 2010 @11:10PM (#33254870) Journal

    That's why we manufacture in China.

    You say that like it's a bad thing. People take factory jobs in China for the same reason that they take any job anywhere else in the world: it beats the alternatives. If Apple pulled out of China, that's a couple hundred thousand people out of work. If the rest of the global electronics industry did likewise, we're talking tens of millions.

    Perhaps you should take a moment to google "comparative advantage". Then, maybe you should look into how manufacturing is raising the standard of living in China, just like it did here when we went through the industrial revolution.

    -jcr

  • by twidarkling (1537077) on Saturday August 14, 2010 @11:14PM (#33254884)

    While I detest Apple's products and tactics as a company, I don't think they're any more (or less) prone to corruption than any other company. So, either it's specifically and unrealistically Apple-bashing (there's so many better reasons), or it's a condemnation of government intervention in business (the excessive control), or it's a condemnation of EVERY business. All three of those are flamebait/trolling.

  • by nacturation (646836) * <nacturation AT gmail DOT com> on Saturday August 14, 2010 @11:24PM (#33254918) Journal

    Where there is excessive control, there's plenty of place for corruption/etc.

    So a complete lack of control would lead to few places for corruption? Your argument makes absolutely no sense.

  • Re:heh (Score:0, Insightful)

    by gabrielex (664157) <gabrielex&gmail,com> on Sunday August 15, 2010 @12:07AM (#33255082) Homepage Journal
    Hmm what about advertising some pre-existing features as new and innovative (front camera, touch screen, applications), when they're clearly something old and already present since ages on older non Apple phones? What about selling a product with a clear reception defect for 800 bucks? What about selling computers (and well as phones and mp3 players) at twice their market value just because of their brand and not because of their internal hardware (identical to other brands because nowaday based on Intel CPU). Sure they are honest!!! ;-)
  • by Anonymous Coward on Sunday August 15, 2010 @01:18AM (#33255378)

    You mis-interpret things. It's zero-tolerance for those who get caught.

    As long as your do business in Asia, there are kickbacks for someone. Even the receptionist gets a kickback from the guy she called to fix the door handle. That's just how things are done.

  • by bm_luethke (253362) <luethkeb@cREDHATomcast.net minus distro> on Sunday August 15, 2010 @01:37AM (#33255438)

    Before Apple makes such a statement about not accepting un-ethical business practices they may want to revisit the whole Jobs/Wozniak deal and why the latter "left" the company.

    But of course Apple is the Eco Friendly Company that Does the Right Thing whenever they can! There is nary an anti-competitive bone in their body and they are fully Open and on for the ride in Open Source technologies!

  • by Sarten-X (1102295) on Sunday August 15, 2010 @01:45AM (#33255460) Homepage

    Taking advantage of the highest technological systems in the world, and at the same time providing employment for poor peasants who will work for pennies per day...

    Seems a little different now, doesn't it? All economic exchanges are based on exploiting others. You go to the store, and con the innocent shopkeeper to give you a gallon of milk for only $2. Meanwhile, the shopkeeper sells off one of his many gallons of milk to some schmuck for $2. At the end of the exchange, you both say "thank you", because you both feel like you've gotten the good end of the deal.

    Rural villages in third-world countries making parts for American companies get the money they need to build their own infrastructure. Sure, they're getting paid less than a dollar a day, but the lineman installing electrical service is also getting paid that same rate. Everything just costs less there, for now, so everyone's happy. Except in extreme circumstances, nobody feels that they're getting exploited.

  • by Anonymous Coward on Sunday August 15, 2010 @01:53AM (#33255474)

    "Blaming unions is the easy thing to do" - by CRCulver (715279) on Sunday August 15, @12:02AM (#33254852) Homepage

    Agreed, because corporate officer pay is outrageous in larger corporate bodies (millions per week, and yes, I have seen payrolls in my time the last nearly 17 yrs. as an information systems worker who has done payrolls programming and reporting in numerous organizations). Fact is, quite a few corporate officers' personal pay on an annual INDIVIDUAL BASIS (e.g. CEO) often exceeds the entire payroll outlay of entire smaller companies. This is the insane fact no one ever seems to mention or note, and I often wonder why? Yea, right. We all know why and especially in publicly traded companies. It's because no one really gives a shit in publicly traded companies. It's not like how the Ford family looks over FORD MOTOR COMPANY or how Bill Gates looked after MICROSOFT when he was at the wheel there. They actually gave a damn about how the place is/was run (respectively) because their names and legacy were in their corporations. You don't see that in publicly held/traded companies. All those are is money making machines for stockholders (and mostly for those with preferred stock, such as upper mgt. and board of directors members as a couple examples thereof), and nothing more. So they cut corners like mad in product quality, sell consumers crap with a warranty on it (a warranty on a piece of shit doesn't make it any less of a piece of shit either), and underpay production workers (slaves is more like it) like crazy, those they have not managed to offshore/outsource that is to avoid insurances & higher pay levels that is, which only helps contribute to the erosion of a middle class in the USA so you only have the "haves/big money" and "have nots/no money-poor", which destroys any possibility of an "economy" (Peter buys from Paul, who pays Henry etc. & back around again type symbiosis), and which also makes it impossible to use your so-called "legal rights", because in case you have not noticed? Attorneys co$t, and cost a lot. This is an impossibility for the less fortunate, even though you're told you have legal rights (especially if indigent, unless in a court of law for a crime you're accused of then you get an attorney serving out his "sentence" of having to do a bit of time for society, not that they give a hoot then, though). So if someone slanders you for example? Good luck taking care of it "gratis" even though you have been blatantly wronged and when you have a definite winner of a case and your so-called 'legal rights'. No, the illusion of "equality" and "freedom" in the USA?? It's a pack of thinly veiled lies at best, and the "controllers" (the wealthy in large corporations and banks mostly) know it, and they use it like mad to conceal what is really fascism in the USA, today.

  • by Runaway1956 (1322357) on Sunday August 15, 2010 @02:01AM (#33255494) Homepage Journal

    Of course it looks different when you change a couple key words. It's called "spin", and it's practiced daily by the newspapers and other media.

    "Providing employment" suggests that people who had nothing can now make purchases, such as housing, automobiles, clothes, etc. In fact, "providing employment" often translates to a marginally better diet, and increased chances of survival. I point to Africa as a prime example. I'm quite sure that you can use Google to locate any number of stories about Gap jeans and other factories located in Africa. If anything, the overall quality of life has been degraded in some of those towns. Entire villages have been overwhelmed with unregulated refuse dumps, and their populations have been reduced to scavenging the dumps for survival.

    China has it's own towns that have been inundated with waste dumps. I saw one set of photos from China of a home that nestled between piles of scrap and refuse, pretty much lost to view from any other home.

    You call it "providing employment", I call it exploitation.

  • Re:Not with Apple (Score:5, Insightful)

    by drsmithy (35869) <drsmithy@nOSPam.gmail.com> on Sunday August 15, 2010 @02:10AM (#33255522)

    They are going to use their budget to go after criminals who kill lots of people or do millions in damage first.

    The average cop on the street is not involved in operations involving "criminals who kill lots of people or do millions in damage".

  • by BasilBrush (643681) on Sunday August 15, 2010 @04:04AM (#33255822)

    On the wage front, it's fairly orthodox among modern economists to believe that a minimum wage does more harm that good to low income earnings (by making it impossible for many to get a job at all).

    That's not the experience in the UK. They introduced a minimum wage in 1999, and increased it every year. For years after, employment went up, not down. None of the claims that businesses would go bankrupt, or stop employing certain categories of workers turned out to be true.

    For sure there are problems with unemployment now because of the recession caused by the banking crisis. But that isn't caused by the minimum wage.

    If you examine executive pay for public companies, you'll see that companies usually can afford to increase the payroll. It's just that the executives get to decide which part of the payroll to increase, and big surprise, they choose to pay themselves more, rather than increase the wages of the lowest level employees. It takes minimum wage legislation or unions to deal with this problem.

  • Re:heh (Score:1, Insightful)

    by E IS mC(Square) (721736) on Sunday August 15, 2010 @08:53AM (#33256580) Journal

    Of course, the spokesperson forgot to mention that in such cases, "honesty" is defined by Apple.

    (And it seems the fanboi army is already out with mod points, so I will lay down my weapons now)

  • by Jackie_Chan_Fan (730745) on Sunday August 15, 2010 @03:05PM (#33258308)

    dont forget 13 suicides + the attempted ones, and the over priced hardware sold in the US.

    Apple is all about raping the people for as much profit as they can get away with.

If the facts don't fit the theory, change the facts. -- Albert Einstein

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