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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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  • Memo... (Score:5, Funny)

    by grub (11606) <slashdot@grub.net> on Saturday August 14, 2010 @10:45PM (#33254464) Homepage Journal

    You're "dogs don't shit where they eat"-ing it wrong.

    Steve
  • by Anonymous Coward on Saturday August 14, 2010 @10:48PM (#33254488)

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

    • Re: (Score:3, Insightful)

      by rtaylor (70602)

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

    • by jcr (53032) <jcr&mac,com> on Sunday August 15, 2010 @12:10AM (#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

  • The Good News (Score:5, Informative)

    by bacon volcano (1260566) on Saturday August 14, 2010 @10:55PM (#33254536)
    Looks like a Global Supply Manager position just became available!

    http://jobs.apple.com/index.ajs?BID=1&method=mExternal.showJob&RID=58206&CurrentPage=7 [apple.com]
  • by omar.sahal (687649) on Saturday August 14, 2010 @10:56PM (#33254542) Homepage Journal

    The indictment describes a scheme in which Devine used his position at Apple to obtain confidential information, which he transmitted to Apple suppliers, including Ang. In return, the suppliers and manufacturers paid Devine kickbacks, which he shared with Ang. The information enabled the suppliers to negotiate favorable contracts with Apple, according to the indictment.

    In case you wanted to know what the scam was, and not read the article.

  • Wow (Score:2, Interesting)

    by MichaelSmith (789609)

    I am amazed (and pleased) that apple care about this. In most places I have worked this is either accepted or actively encouraged. When I worked for Vic Roads [vic.gov.au] the CEO signed a big vehicle fleet outsourcing deal, then retired and jumped straight into a job with the new operator. The general feeling was "meh".

  • by sznupi (719324)

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

    • by nacturation (646836) * <[nacturation] [at] [gmail.com]> on Sunday August 15, 2010 @12:24AM (#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.

      • by sznupi (719324)

        So, how hard was it to miss "excessive"? (and it does work like that; I had plenty examples, in a place formerly behind the Iron Curtain...)

      • by Kitkoan (1719118)

        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.

        I think he meant excessive control by one person (Jobs). When there is too much control by one person your more likely to see corruption because your stuck with the whims that one person where as if there are many people in control they are more likely to debate amongst themselves and see more of the positive/negatives of suggestions and ideas. So if the one person who controls too much says "no" to your idea that your entire department thinks is amazing then they are more likely to be more corrupt, and sin

  • by haystor (102186) on Saturday August 14, 2010 @11:04PM (#33254614)

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

    *cough*
    back dated options
    *cough*

  • but no zero tolerance for Foxconn?

  • by Ilgaz (86384) on Saturday August 14, 2010 @11:29PM (#33254718) Homepage

    For me, this explains the white iPhone mystery. It wasn't about the "perfect white tone", it was connected to this guy (IMHO who is doomed) and material manufacturers. I always wondered how Apple, the Apple can't get a manufacturer to produce some tone of white for a device people line up for. It happens to small companies/single designers all the time but not to Apple sized companies.

    There was something really mysterious about that white iphone and I think it is connected to this guy and the whole setup.

    I think, as it hasn't been settled silently, this thing will be huge soon. BTW; at first read you think like some "cover designer" companies etc. involved, no they talk about the actual device suppliers.

    • Sorry I don't get you on this. Can you clarify what the White iPhone mystery was?

      • by cgenman (325138)

        The iPhone 4 was also supposed to come in White. At first, it was to come at the same time. Then "soon" after the black version. Now it is even later, as it is supposedly getting the rumored new iPhone 4 (now without terrible antenna) treatment.

        • by Ecuador (740021)

          That's the "mystery"? Why the white iPhone 4 was delayed?
          OMG, this is serious! We should get the Interpol involved ASAP!
          Wait, that's not enough, let's also get some mystery writers working on solving this too!
          Better yet, we have to try and get Mr. Holmes, even if it has to be through some time/reality vortex.
          Or even better, we could tune the time/reality vortex to 24th century ST universe and get Lt. Cmdr Data as Holmes!

  • Apple is well known for its aggressive pursuit of leaks and leakers, both internally and externally, so it is surprising that this mid level manager thought that he would get away with this. In fact, it was probably inevitable that he would eventually be caught. Steve probably organized some plan whereby a specific piece of information, known only to the middle manager and Job's henchmen, was provided so that when it leaked they would immediately have confirmation of the source. Recall that Apple regularly

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