Paul Shin Devine, 37, of Sunnyvale, California is being held on accusations that he accepted more than $1 million in kickbacks from Asian suppliers of iPhone and iPod accessories. Also named was Andrew Ang, of Singapore, in a 23-count federal grand jury indictment for wire fraud, money laundering and kickbacks.
Devine was a Sr. Operations Manager, iPod at Apple Computer for five years. He worked at Teradyne from 1998-2005 and got a degree from MIT’s Sloan School of Management in 2005. He graduated from the Merchant Marine Academy in 1996.
“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 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. The companies were not named in the indictment, but they were described as suppliers of materials designed for Apple’s iPhone and iPod products. They are located in “various countries in Asia,” the indictment said, including China, South Korea, Taiwan and Singapore.
Apple is seperately suing Devine and claimed he received more than $1 million in “payments, kickbacks and bribes” over several years.
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