Ex-Apple supply chain manager fined, sentenced to 1 year in prison for kickback scheme

Posted:
in iPhone edited December 2014
Former Apple Global Supply Manager Paul Devine --?who ran afoul of the law in 2010 for selling details of upcoming Apple products to Asian manufacturers --?has been sentenced to one year in prison and fined $4.5 million for his role in the conspiracy.

iPhone 4


Devine plead guilty to the crimes in 2011, but was only sentenced this week. He will begin serving his prison term --?which will be followed by three years of supervised probation --?on Feb. 19, 2015.

Alongside Singaporean partner Andrew Ang, Devine was charged in 2010 with 23 counts including wire fraud, kickbacks, and money laundering. Devine used his position as a senior supply chain manager to pass information about upcoming products to Apple suppliers, which used the information to gain leverage in negotiations with Apple and paid kickbacks to Devine and Ang.

At the time Devine plead guilty, he was ordered to forfeit some $2.3 million in property and money. The federal government also seized $150,000 in cash from Devine's home --?which he reportedly stashed in shoe boxes --?alongside nearly $1 million from various bank accounts in both his and his wife's name.

Devine received the funds into multiple bank accounts in the U.S. and South Korea, including some opened under a shell company called CPK Engineering.

A Singaporean national named Chua Kim Guan has also been charged by Singaporean courts with giving kickbacks to Devine, according to the U.S. Department of Justice.
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Comments

  • Reply 1 of 51
    gtrgtr Posts: 3,231member
    The definitive version of hero to zero.
  • Reply 2 of 51

    Not to minimize his crime, but the Wall Street bankers who caused the 2008 crash got away without as much as a slap on the wrist.

  • Reply 3 of 51
    apple ][apple ][ Posts: 8,437member

    This just seems like pure greed.

     

    The guy wasn't poor or desperate. You know that he was making good money at his job and he was a millionaire. Why risk everything that you have?

     

    Anyway, good riddance to scumbag leakers.

     

    All leakers of Apple info should be prosecuted, from the lowest levels to the highest.

  • Reply 4 of 51
    Not to minimize his crime, but the Wall Street bankers who caused the 2008 crash got away without as much as a slap on the wrist.

    That's a simplistic interpretation of events. The seeds of the collapse were political in nature and were sown over a number of years by Democrats and Republicans. One doesn't get to $18 trillion in debt (as we are today in the US) acting alone.
  • Reply 5 of 51
    While it's good they caught Devine, he's just a small fish. What position would someone need at a supplier where you could authorize millions in kickbacks for information and then give that information to execs to negotiate deals? Those are the ones who really need to go to prison.
  • Reply 6 of 51
    malaxmalax Posts: 1,598member
    Quote:
    Originally Posted by SpamSandwich View Post





    That's a simplistic interpretation of events. The seeds of the collapse were political in nature and were sown over a number of years by Democrats and Republicans. One doesn't get to $18 trillion in debt (as we are today in the US) acting alone.

    Right.  Even the housing bubble related part has no single culprit and has its roots in government government policy.  Politicians and policy makers wanted to encourage home ownership so they made lending money for mortgages less risky (to banks); individual actors realized that lowering and lowering the barriers to lending was personally profitable (people had strong incentives to look the other way, or even encourage, fraud); with housing prices going up, up, up, no one was paying the price for bad gambles; clever (but not clever enough) financial wizards thought they had a way to eliminate risk by bundling risky mortgages; banks couldn't get enough of these new financial instruments and pushed for even more mortgages; etc.  A complex house of cards that literally millions of people contributed to (including individual home owners who purchased houses that they would never be able to afford--except under the foolish assumption that housing prices would continue to rise for years to come).  So, yeah, this is a little different from some guy caught red-handed selling trade secrets.

  • Reply 7 of 51
    malaxmalax Posts: 1,598member
    Quote:

    Originally Posted by EricTheHalfBee View Post



    While it's good they caught Devine, he's just a small fish. What position would someone need at a supplier where you could authorize millions in kickbacks for information and then give that information to execs to negotiate deals? Those are the ones who really need to go to prison.

    Excellent point.  Too bad this didn't lead to any action against the people who were paying the bribes/kickbacks.

  • Reply 8 of 51
    boredumbboredumb Posts: 1,414member

    I guess AI's spellchecker doesn't know the words "pleaded" or "pled"...?

    Sorry to just nitpick.

  • Reply 9 of 51
    boredumb wrote: »
    I guess AI's spellchecker doesn't know the words "pleaded" or "pled"...?
    Sorry to just nitpick.

    Spellcheck is usually pretty good, but occasionally has some headslappers.
  • Reply 10 of 51
    apple ][apple ][ Posts: 8,437member
    Quote:
    Originally Posted by malax View Post

     

    Excellent point.  Too bad this didn't lead to any action against the people who were paying the bribes/kickbacks.




    Um, it did. They got at least one person who was giving the kickbacks.

     

    A Singaporean national named Chua Kim Guan has also been charged by Singaporean courts with giving kickbacks to Devine, according to the U.S. Department of Justice.

  • Reply 11 of 51
    Quote:

    Originally Posted by SpamSandwich View Post



    That's a simplistic interpretation of events. The seeds of the collapse were political in nature and were sown over a number of years by Democrats and Republicans. One doesn't get to $18 trillion in debt (as we are today in the US) acting alone.

    There's nothing wrong with "$18 trillion in debt."

     

    The fact that you guys keep bringing this up doesn't amount to a hill of beans. Talk about 'simplistic interpretations'!

  • Reply 12 of 51
    There's nothing wrong with "$18 trillion in debt."

    The fact that you guys keep bringing this up doesn't amount to a hill of beans. Talk about 'simplistic interpretations'!

    Sure indebtedness matters. It means that the country is in a very weak position with regard to the holders of the debt. That is very bad position that endangers the independence of the entire country and the people who ultimately pay that price, the taxpayers.

    Ask the Irish, or the Greeks, or the Spanish what are their thoughts on the matter.
  • Reply 13 of 51
    jbdragonjbdragon Posts: 2,043member
    Quote:

    Originally Posted by LordJohnWhorfin View Post

     

    Not to minimize his crime, but the Wall Street bankers who caused the 2008 crash got away without as much as a slap on the wrist.


     

    They didn't cause the Crash, it was the Government getting involved that caused the crash!!!  The Government forcing banks to give out home loans to people who could never afford to pay the loans back.  Which artificially caused home prices to rise to crazy high prices.   It was only a matter of time before a crash happened.   My Dad lost his house.  My Brother ended up losing his house.  Paid way to much for it!!!!  Both houses ended up being Short Sale.  Me I played it smart.  I waited until a couple years ago and the got my house after the Big Drop.  I got a nice house for a much lower price.  Far more reasonable/realistic price.

     

    They didn't get a slap because it was the Government that created the problem and the Government that bailed them out!!!

  • Reply 14 of 51
    Quote:
    Originally Posted by SpamSandwich View Post



    Sure indebtedness matters. It means that the country is in a very weak position with regard to the holders of the debt. That is very bad position that endangers the independence of the entire country and the people who ultimately pay that price, the taxpayers.



    Ask the Irish, or the Greeks, or the Spanish what are their thoughts on the matter.

    Please give up on this. There's so much about this that you don't understand.

     

    Let's start with the comparison to Ireland, Spain and Greece: it's meaningless. They had control over their fiscal policies, but not their monetary policy (in Euros). The US controls both its fiscal and monetary policies. Huge difference.

     

    If the debt were perceived to be an issue US we would, at a minimum, see higher interest rates, higher inflation, and a dollar depreciation. We have had for many years, and continue to have, historically low inflation and interest rates (and, as evident from the term structure of interest rates, almost none of either in the next ten-year horizon), and the dollar has been appreciating against the major currencies of the world.

     

    Our debt-to-GDP ratio has been falling dramatically. The budget deficit has improved dramatically, forecasting a continued decline i the debt-to-GDP ratio.

     

    Our stock market is doing well. GDP growth is back in a significant way (~4% in the past couple of quarters). Unemployment has declined significantly. The decline in oil prices will provide a further boost. If we can fix the corporate tax policy, investment spending by US companies in the US will improve significantly.

     

    At what point do you guys on the Far Right admit that your chicken little 'sky is falling' doom and gloom is just plainly wrong? At what point does actual empirical evidence begin to matter to you folks? How many years will it take?!

     

    (Fixed a couple of typos).

  • Reply 15 of 51
    zoetmbzoetmb Posts: 2,423member
    Quote:

    Originally Posted by JBDragon View Post

     

     

    They didn't cause the Crash, it was the Government getting involved that caused the crash!!!  The Government forcing banks to give out home loans to people who could never afford to pay the loans back.  Which artificially caused home prices to rise to crazy high prices.   It was only a matter of time before a crash happened.   My Dad lost his house.  My Brother ended up losing his house.  Paid way to much for it!!!!  Both houses ended up being Short Sale.  Me I played it smart.  I waited until a couple years ago and the got my house after the Big Drop.  I got a nice house for a much lower price.  Far more reasonable/realistic price.

     

    They didn't get a slap because it was the Government that created the problem and the Government that bailed them out!!!




    Wait a minute.   Your family members lost their houses because they took on a mortgage greater than they could afford and you're blaming the Government?   Most people who blame the Government are political conservatives.   Don't Conservatives preach personal responsiblity?   The rise in home prices has nothing to do with someone's ability to pay the mortgage if they're already in the home.   At worst, it means that they paid higher real-estate taxes over time.   And if they're buying a home, it still takes an idiot to buy a home they can't afford.    I'll never live in Manhattan or Westchester because I can't afford it.   I'm not going to buy there and then blame the Government or a bank because I can't afford the mortgage that I chose to take on. 

     

    The reality is that the banks are at fault, not the U.S. Government, because it was the banks who repackaged bad loans into complex "products" that were high risk and no one could understand while not having the capital in place to support losses.   And consumers share responsibility for taking on more debt than they could afford or who had promotional interest rates that were going to go up, but they acted as if the rate was always going to be the promotional rate.   The deficit (as other posters have claimed) has nothing to do with it.   Yes, the Government should have had more regulations on the banks, but Republicans opposed those regulations and STILL DO!    

     

    The consumers who were not to blame are those who lost their jobs in the resulting recession.   Since it was the banks who caused this problem, they shouldn't have forced consumers out of their homes.    

     

    I've always wondered how people who made far less than I did seemed to live a much richer lifestyle.   It was because they took on tons of debt and I have no debt except for a reasonable mortgage.   My variable rate mortgage was on terms that I understood and in fact, with interest rates low the last dozen years, my mortgage payments have declined almost every year (although my co-op maintenance payments have risen substantially and are now 40% more than my mortgage payment).   It's currently about 3%.    When I first got the mortgage in 1990, it was probably something like 9%.  

     

    So while I do blame the banks for the big crash, I have to admit that my bank has been quite wonderful in regards to my own mortgage.  They've delivered exactly what they promised.    I cannot complain about a 3% interest rate. 

  • Reply 16 of 51
    Please give up on this. There's so much about this that you don't understand.

    Let's start with the comparison to Ireland, Spain and Greece: it's meaningless. They had control over their fiscal policies, but not their monetary policy (in Euros). The US controls both its fiscal and monetary policies. Huge difference.

    If the debt were perceived to be an issue US we would, at a minimum, see higher interest rates, higher inflation, and a dollar depreciation. We have had for many years, and continue to have, historically low inflation and interest rates (and, as evident from the term structure of interest rates, almost none of either in the next ten-year horizon), and the dollar has been appreciating against the major currencies of the world.

    Our debt-to-GDP ratio has been falling dramatically. The budget deficit has improved dramatically, forecasting a continued decline i the debt-to-GDP ratio.

    Our stock market is doing well. GDP growth is back in a significant way (~4% in the past couple of quarters). Unemployment has declined significantly. The decline in oil prices will provide a further boost. If we can fix the corporate tax policy, investment spending by US companies in the US will improve significantly.

    At what point do you guys on the Far Right admit that your chicken little 'sky is falling' doom and gloom is just plainly wrong? At what point does actual empirical evidence begin to matter to you folks? How many years will it take?!

    (Fixed a couple of typos).

    Who are "you guys on the far Right"? If you care to get real for just a second, both Bush and Obama are on the "far Right" on military matters. Both were on the "far Left" on bailouts. It's really not useful.
  • Reply 17 of 51
    Quote:

    Originally Posted by anantksundaram View Post

     

    Please give up on this. There's so much about this that you don't understand.

     

    Let's start with the comparison to Ireland, Spain and Greece: it's meaningless. They had control over their fiscal policies, but not their monetary policy (in Euros). The US controls both its fiscal and monetary policies. Huge difference.

     

    If the debt were perceived to be an issue US we would, at a minimum, see higher interest rates, higher inflation, and a dollar depreciation. We have had for many years, and continue to have, historically low inflation and interest rates (and, as evident from the term structure of interest rates, almost none of either in the next ten-year horizon), and the dollar has been appreciating against the major currencies of the world.

     

    Our debt-to-GDP ratio has been falling dramatically. The budget deficit has improved dramatically, forecasting a continued decline i the debt-to-GDP ratio.

     

    Our stock market is doing well. GDP growth is back in a significant way (~4% in the past couple of quarters). Unemployment has declined significantly. The decline in oil prices will provide a further boost. If we can fix the corporate tax policy, investment spending by US companies in the US will improve significantly.

     

    At what point do you guys on the Far Right admit that your chicken little 'sky is falling' doom and gloom is just plainly wrong? At what point does actual empirical evidence begin to matter to you folks? How many years will it take?!

     

    (Fixed a couple of typos).


     

    Yes, exactly. And the few places trending with colder temperatures in the past few years disproves climate change. We should just ignore everything we know about personal debt as it has no application to national debt and just trust the "smart people".

     

    /sarcasm

  • Reply 18 of 51
    Quote:

    Originally Posted by SpamSandwich View Post



    Who are "you guys on the far Right"? If you care to get real for just a second, both Bush and Obama are on the "far Right" on military matters. Both were on the "far Left" on bailouts. It's really not useful.

    Fair enough. I take back the 'Far Right' bit.

     

    Why don't you address the substantive portion of my comment?

  • Reply 19 of 51
    Quote:

    Originally Posted by Tenfingers View Post

     

    Yes, exactly. And the few places trending with colder temperatures in the past few years disproves climate change. We should just ignore everything we know about personal debt as it has no application to national debt and just trust the "smart people".

     

    /sarcasm


    The "/sarcasm" tag in your post is misplaced. Unless your household is allowed to print money.

     

    /sarcasm

  • Reply 20 of 51
    Fair enough. I take back the 'Far Right' bit.

    Why don't you address the substantive portion of my comment?

    I will when I'm not on my cell phone. I'd like to provide your assertions with an appropriately sized avalanche of opposing information.
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