Apple Global Supply Manager and Accomplice Indicted in Alleged $2.5 Million International Kickback Scheme Involving Six Suppliers

MR - Paul Shin Devine, a California-based Apple Computer Global Supply Manager, and Andrew Ang of Singapore, were charged in a 23 count indictment that alleges the two orchestrated a procurement kickback scheme. Devine worked on the side as a consultant, most recently through his consultancy CPK Engineering, selling trade secrets and favorable treatment to prospective Apple suppliers. One of Devine's alleged clients, Cresyn Co. of South Korea, claims that it was under the impression its consulting agreement was directly with Apple. Devine, who is facing wire fraud and conspiracy charges and lives in Sunnyvale, Calif., was arrested and made his initial appearance in U.S. Federal Court on 13 August. In addition to wire fraud and conspiracy, the grand jury charged Devine with money laundering and engaging in monetary transactions with criminally-derived property. The alleged kickback scheme dated back to February 2007 or before, through August 2010. The charges hold stiff penalties for Devine, which could be up to 430 years in prison, $6.75 million in fines, and additional restitution and damages realized by Apple. (Research Note includes copy of complaint. 710 words) . . . (to read the remainder of this article, please log in below.)