A former Apple Global Supply Manager was sentenced in a San Jose federal court earlier this week nearly 3 years after being convicted of wire fraud, conspiracy and money laundering in relation to selling Apple iPhone and component secrets to Apple’s suppliers. AP notes that Paul Shin Devine was up to no good:
“The scheme funneled millions in kickbacks to Devine for passing along confidential information to Apple Inc. suppliers and manufacturers who used the secrets to negotiate more favorable deals.”
When the case was tried in 2010, Apple spokesman Steve Dowling said, “Apple is committed to the highest ethical standards in the way we do business. We have zero tolerance for dishonest behavior inside or outside the company.”
“The original indictment described 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.”
At the time Apple was hoping to recover $1 million from Devine, so it isn’t clear why the amount rose so significantly in the 3 years since the conviction. It also isn’t certain why Devine’s sentencing took so long or was so much shorter that the 20 years he faced.
We can speculate that he probably helped convict some of the people who bribed him and were sentenced last week. During those investigations, the bribery amount was probably found to be much higher than originally reported.
Devine’s LinkedIn account still lists himself an Apple employee.
FTC: We use income earning auto affiliate links. More.