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Apple manager charged with leaking secrets for kickbacks

post #1 of 94
Thread Starter 
A global supply manager working for Apple has been charged in a US federal grand jury indictment for wire fraud, kickbacks and money laundering, and is also facing a civil suit from Apple itself.

According to a report by the San Jose Mercury News, 37 year old Paul Shin Devine of Sunnyvale, California was named in the 23 count indictment along with Andrew Ang of Singapore.

The charges relate to an alleged fraud scheme that claims Devine used his security clearance at Apple to provide confidential information about upcoming products to Apple's suppliers, including Ang. The indictment says those suppliers then used the secrets to negotiate favorable contracts with Apple and subsequently paid Devine kickbacks, which he shared with Ang.

The funds were said to be laundered through a series of accounts in US and foreign banks, with the payments identified as "samples" so as not to arouse suspicion. Devine reportedly opened accounts to accept payments under both his and his wife's names, and in some cases was said to accept bribes in person while meeting with the suppliers in Asia.

The companies involved were not named in the indictment, but include suppliers for iPhone and iPod products and were said to be located in "various countries in Asia," including China, Singapore, South Korea and Taiwan.

The case was put together by the US Federal Bureau of Investigation and Internal Revenue Service, which reported that Devine is currently being held U.S. Marshals Service and will face a San Jose, California federal court appearance on Monday. The report said the IRS declined to comment on Ang's current status.

In addition to the criminal prosecution, Apple is also reportedly bringing a civil suit that claims Devine accepted more than a million dollars in "payments, kickbacks and bribes" over several years.

"Apple is committed to the highest ethical standards in the way we do business," said Apple spokesman Steve Dowling in a statement. "We have zero tolerance for dishonest behavior inside or outside the company."

Apple has long worked hard to maintain secrecy in order to keep competitors guessing and to excite customers with flashy product releases, but the case also highlights threats the company faces in working with its own partners in the lucrative business of supplying parts and assembling new products.

Whether the case will have an effect upon the product prototype leaks (primarily from Asian suppliers) that have resulted in regular new explosions of media attention remains to be seen.
post #2 of 94
I guess this guy was the leaker, eh? No more soup for you! Next!

Proud AAPL stock owner.

 

GOA

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Proud AAPL stock owner.

 

GOA

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post #3 of 94
This is definitely criminal action. No excuse for this.
post #4 of 94
Quote:
Originally Posted by extremeskater View Post

I wonder how long he got way with that before getting caught. Thats about as major as it gets.

I wonder if they let him keep getting away with it whilst they continued to gather more evidence?

Apple must be delighted to have figured this out.
post #5 of 94
If convicted, prison time would be too good. Make him face Steve. In person.
post #6 of 94
Quote:
Originally Posted by AppleInsider View Post

"Apple is committed to the highest ethical standards in the way we do business," said Apple spokesman Steve Dowling in a statement. "We have zero tolerance for dishonest behavior inside or outside the company."

There should be an asterisk after "inside" and it should say:

*Except for backdating stock options.
post #7 of 94
His punishment should be to wear faded, ill-fitting, waist high 'Mom' Jeans, cheap white Nike trainers from Target and a Black Turtle Neck sweater for the rest of his life ...
post #8 of 94
Quote:
Originally Posted by AppleInsider View Post

A global supply manager working for Apple has been charged in a US federal grand jury indictment for wire fraud, kickbacks and money laundering, and is also facing a civil suit from Apple itself. ...

This make no sense (as reported).

He was supposedly selling "secrets" to manufacturers, but other sites are reporting that the manufacturers were case manufacturers? What possible "secrets" could be passed to a case manufacturer that would allow them to make a better deal with Apple when they were negotiating their contract? Sounds bogus to me.

It makes far more sense if he was leaking actual product info as in he was the source of all the recent leaks.

Also, if he supposedly made a million bucks doing this over the course of it, he was seriously underpaid. What kind of a moron ruins their whole life for anything under a few million? He would have been getting only a few tens of thousands per leak it seems. That's not enough to do such a serious crime and possibly (like this guy) lose everything over.

Stupid is as stupid does I guess.
post #9 of 94
Quote:
Originally Posted by balsy2001 View Post

There should be an asterisk after "inside" and it should say:

*Except for backdating stock options.

Except everyone involved with that was immediately fired when it came to light and then prosecuted. Just like this time.
post #10 of 94
Wow these Asian companies play hardball.
post #11 of 94
Quote:
Originally Posted by Prof. Peabody View Post

What possible "secrets" could be passed to a case manufacturer that would allow them to make a better deal with Apple when they were negotiating their contract?

Possible the case manufacturer was selling the secrets to someone else.

Quote:
What kind of a moron ruins their whole life for anything under a few million?

The kind of moron who gets life in prison because he murdered someone over a couple dollars. Never underestimate the stupidity a human can commit.
post #12 of 94
Good to see APPLE is on the ball and not just sitting back. Make no mistake APPLE takes its R&D seriously and has many checks and balances in place to curtail these type of leaks and corporate espionage.
Hopefully this guy can use his kickbacks in jail. LOL
post #13 of 94
Oops.
post #14 of 94
Was he underpaid ?

Was he part of a conspiracy to sell mixed false and true information ?
post #15 of 94
Quote:
Originally Posted by sippincider View Post

... The kind of moron who gets life in prison because he murdered someone over a couple dollars. Never underestimate the stupidity a human can commit.

Yeah.

It will be interesting to see if Apple drops the suppliers. The article says "six accessory manufacturers" which could be all the main ones for all we know. There certainly aren't that many good ones out there to choose from.
post #16 of 94
post #17 of 94
Quote:
Originally Posted by sippincider View Post

Possible the case manufacturer was selling the secrets to someone else...

Probably the company that released that cheesy iPhone 4 knockoff. They managed to bang it out within a few weeks of the actual iPhone 4, and that's impossible without advance knowledge of the exact dimensions.

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Sent from my iPhone Simulator

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post #18 of 94
This bastard should be put away so others will learn their lesson.

I hope he gets the maximum. No deals with the government should be accepted.
post #19 of 94
Quote:
Originally Posted by balsy2001 View Post

There should be an asterisk after "inside" and it should say:

*Except for backdating stock options.

If you have legal knowledge on the practice of "backdating stock options" I'd love for you to share, but I'm guessing you've already "shot your load" on this issue.
Apple, bigger than Google, ..... bigger than Microsoft,   The universe is unfolding as it should. Thanks, Apple.
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Apple, bigger than Google, ..... bigger than Microsoft,   The universe is unfolding as it should. Thanks, Apple.
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post #20 of 94
This is not good for people who live on Apple rumor sites. Like US!
post #21 of 94
Quote:
Originally Posted by sippincider View Post

If convicted, prison time would be too good. Make him face Steve. In person.

Then... an iphone video while the noose goes around the neck! (ala Sadam)
"Go ahead....make my day!"

PS Backdating is MicroSoft's reason for living! (See Parish Investments)
and : .pulitzer.org/archives/7190[/url]
post #22 of 94
Quote:
Originally Posted by Blackintosh View Post

This is not good for people who live on Apple rumor sites. Like US!

There where two problems here.

One is the unofficial leaks. The other is taking money for those leaks. Leaks of consummer interest won't dry up totally but the blatant industrial espionage will. Sometimes it makes one wonder if the ethical issues are worth working in China.

By the way you still would have issues in other parts of the world, it is just that China is well noted for its knock off industries.
post #23 of 94
Quote:
Originally Posted by balsy2001 View Post

There should be an asterisk after "inside" and it should say:

*Except for backdating stock options.

Backdating stock options, in and of itself, is not illegal. You need to try a little harder to draw that connection. Not that it's impossible, mind you, it's just that you can't score a point for your wit that easily.
post #24 of 94
Quote:
Originally Posted by Blackintosh View Post

This is not good for people who live on Apple rumor sites. Like US!

Next time Apple introduces a new sensor or a new form factor, it will have a better chance of surprising us at the event, but a slimmer chance of a suitable protective case being available for the first buyers.

Anyway, who'd rush to be an early adopter if not to show off for at least a few weeks? Which is I guess time enough for the first cases to become available.
post #25 of 94
Quote:
Originally Posted by Prof. Peabody View Post

Except everyone involved with that was immediately fired when it came to light and then prosecuted. Just like this time.

Not everyone involved with the backdating of Apple options was fired... Just the people that did something sneaky with respect to the accounting for them... which, by the way, is the main way to get in trouble when backdating.

Thompson
post #26 of 94
LOL Of all the things not to do at Apple that would be the one Id be most afraid of. Id rather tug on Supermans cape or pull the mask off that old Lone Ranger before I leaked secrets at Apple.

A couple things should come of this. Leaks will drop a bit because this leak has been plugged, although the secrets look they were sold to other tech companies not to the press. And well see Apple tighten up security even more, perhaps even going to the extreme (read: extreme for Apple.).
Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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Dick Applebaum on whether the iPad is a personal computer: "BTW, I am posting this from my iPad pc while sitting on the throne... personal enough for you?"
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post #27 of 94

deleted


Edited by kellya74u - 7/24/13 at 10:29am
post #28 of 94
Quote:
Originally Posted by newbee View Post

If you have legal knowledge on the practice of "backdating stock options" I'd love for you to share, but I'm guessing you've already "shot your load" on this issue.

Load would be too generous a term.
post #29 of 94
Quote:
Originally Posted by thompr View Post

Not everyone involved with the backdating of Apple options was fired... Just the people that did something sneaky with respect to the accounting for them... which, by the way, is the main way to get in trouble when backdating.

Thompson

Yeah, that's what I meant. Thanks for the clarification.
post #30 of 94
...until proven guilty in court. Remember?

No, the angry and self-righteous mob never does.

Anyways, I have no doubt he will be proven guilty, but I have doubts about the extent of his actions. And it doesn't seem that Apple was harmed in any significant way, rather he may have been giving some suppliers a competitive edge against other suppliers.
post #31 of 94
Quote:
Originally Posted by balsy2001 View Post

There should be an asterisk after "inside" and it should say:

*Except for backdating stock options.

Do you often make snippy sounding statements that are totally off-base to make yourself feel superior? Do you often interrupt discussions at the grown-ups table, with some lame idea of moral equivalence, so you can feel better about being a brat?

I do seem to remember the Justice Department's statements regarding Apple's openness over the matter, and the lack of subsequent prosecution.

You can go back to the kiddy table now.
post #32 of 94
Quote:
Originally Posted by DrDoppio View Post

...until proven guilty in court. Remember?

No, the angry and self-righteous mob never does.

Anyways, I have no doubt he will be proven guilty, but I have doubts about the extent of his actions. And it doesn't seem that Apple was harmed in any significant way, rather he may have been giving some suppliers a competitive edge against other suppliers.

I'm sure you have REALLY well founded doubts.
Congratulations, and seriously... who are you again?
post #33 of 94
Quote:
Originally Posted by DrDoppio View Post

...until proven guilty in court. Remember?

No, the angry and self-righteous mob never does.

Anyways, I have no doubt he will be proven guilty, but I have doubts about the extent of his actions. And it doesn't seem that Apple was harmed in any significant way, rather he may have been giving some suppliers a competitive edge against other suppliers.


The self-righteous mob never considers what they would do in the same situation, faced with accepting a million dollars in bribes, or just walking away. Everyone, EVERYONE, has a price. Even Steve Jobs.

Apple needs to change managers more often to prevent this sort of thing from happening.
post #34 of 94
Quote:
Originally Posted by oxygenhose View Post

... who are you again?

I could ask you the same, if I would give a rat's behind...
post #35 of 94
Greed!
post #36 of 94
Quote:
Originally Posted by sippincider View Post

If convicted, prison time would be too good. Make him face Steve. In person.

Nah, just make him face a firing squad.
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From Apple ][ - to new Mac Pro I've used them all.
Long on AAPL so biased
"Google doesn't sell you anything, they just sell you!"
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post #37 of 94
Quote:
Originally Posted by jz1492 View Post

Next time Apple introduces a new sensor or a new form factor, it will have a better chance of surprising us at the event, but a slimmer chance of a suitable protective case being available for the first buyers.

Anyway, who'd rush to be an early adopter if not to show off for at least a few weeks? Which is I guess time enough for the first cases to become available.

Yeah, I get really heartbroken and distraught over the immediate availability of $20 pieces of plastic.

I'm sure electronics manufacturers really need to double check the needs of everyone with a low-end plastic molding manufacturing shop before they invest millions into a device. It's a multi-billion dollar parasite iPod/iPhone accessory market, you'd think they'd just be happy Apple has created a niche they can parasite from.

In other *groundbreaking news*...
New research indicates that dogs actually wag their own tails, and not the other way around.
post #38 of 94
Quote:
Originally Posted by DrDoppio View Post

I could ask you the same, if I would give a rat's behind...

Well exactly, but the burden of proof is on you with your insane prejudices and ideas. Sounds like the article has more detail and depth than any of your 'doubts'. Until Dr. Doppio is given some kind of official recognition, the only spot open for you is in the gutter-snipe section.

I'm sure you live in a fantastical bizarro universe, but until you produce some actual photos... don't get mad if everyone else says it's only in your imagination. Is Oswald in there with you?
post #39 of 94
Quote:
Originally Posted by dualie View Post

The self-righteous mob never considers what they would do in the same situation, faced with accepting a million dollars in bribes, or just walking away. Everyone, EVERYONE, has a price. Even Steve Jobs.

Apple needs to change managers more often to prevent this sort of thing from happening.

'Everyone has a price"? That's one of those often spouted, meaningless and totally indefensible non-sequiturs for selling bad book and movie plots. Fact time... Everyone can be a criminal, but the overwhelming majority aren't. Price is meaningless, and no matter how big the bribe, it's pretty difficult to enjoy thru bars in your 8x8 cell.

Instead of managing iPods and iPhones, these two can manage their bunks, toilet bowls and shower rape. Cause... everybody has their price!
post #40 of 94
Quote:
Originally Posted by Prof. Peabody View Post

Except everyone involved with that was immediately fired when it came to light and then prosecuted. Just like this time.

ummm...were they???
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