Apple manager charged in kickback scheme agrees to protect secrets
The Apple manager accused of taking kickbacks in exchange for company information has agreed to keep secret company information from being publicly disclosed through an ongoing criminal case.
Paul Devine agreed to a protective order put together by the U.S. Attorney's Office in San Francisco, Calif., last week, according to Bloomberg. The prosecution noted that discovery in the case against the Apple employee could produce material "that is intended to be kept secret and is trade secret information."
"Devine agreed to procedures about how the data will be handled during pretrial bargaining, without giving up his right to challenge how such information may be used at trial, according to court documents," the report said.
Devine, 37, was arrested in August and charged with accepting more than a million dollars in kickbacks from Asian suppliers. He has pleaded not guilty.
Investigators in the case found that Devine had stashed more than $150,000 in shoe boxes in his home. The prosecution has alleged that the Apple manager used his security clearance to provide confidential information to Apple's overseas suppliers, which then used the information to negotiate favorable contracts.
In addition to the criminal trial -- in which Devine has been charged with wire fraud, kickbacks and money laundering -- he also faces a civil suit from Apple. A judge last month determined that Devine would be a potential flight risk if he was let out on bail before turning over the cash he received, much of which is said to be in overseas bank accounts.
Devine's arrest caused a stir with Apple's overseas suppliers, including Pegatron, which suspended an executive that was linked to the kickback scheme. Pegatron was allegedly not involved in the scam, but it since acquired Kaedar Electronics, which paid a brokerage commission to an intermediate trading company -- not an individual -- between 2005 and 2008. Kaedar has supplied iPod packing boxes to Apple since 2005.
In addition, officials with Cresyn said their company met with Devine in 2006, and the Apple supply manager reportedly offered consulting services to aid in negotiations with Apple. Cresyn, which supplies earbuds that ship with Apple's iPods, said it believes it made a "legal contract" with Devine, in which it paid a consulting fee in exchange for "general information about U.S. markets."
Paul Devine agreed to a protective order put together by the U.S. Attorney's Office in San Francisco, Calif., last week, according to Bloomberg. The prosecution noted that discovery in the case against the Apple employee could produce material "that is intended to be kept secret and is trade secret information."
"Devine agreed to procedures about how the data will be handled during pretrial bargaining, without giving up his right to challenge how such information may be used at trial, according to court documents," the report said.
Devine, 37, was arrested in August and charged with accepting more than a million dollars in kickbacks from Asian suppliers. He has pleaded not guilty.
Investigators in the case found that Devine had stashed more than $150,000 in shoe boxes in his home. The prosecution has alleged that the Apple manager used his security clearance to provide confidential information to Apple's overseas suppliers, which then used the information to negotiate favorable contracts.
In addition to the criminal trial -- in which Devine has been charged with wire fraud, kickbacks and money laundering -- he also faces a civil suit from Apple. A judge last month determined that Devine would be a potential flight risk if he was let out on bail before turning over the cash he received, much of which is said to be in overseas bank accounts.
Devine's arrest caused a stir with Apple's overseas suppliers, including Pegatron, which suspended an executive that was linked to the kickback scheme. Pegatron was allegedly not involved in the scam, but it since acquired Kaedar Electronics, which paid a brokerage commission to an intermediate trading company -- not an individual -- between 2005 and 2008. Kaedar has supplied iPod packing boxes to Apple since 2005.
In addition, officials with Cresyn said their company met with Devine in 2006, and the Apple supply manager reportedly offered consulting services to aid in negotiations with Apple. Cresyn, which supplies earbuds that ship with Apple's iPods, said it believes it made a "legal contract" with Devine, in which it paid a consulting fee in exchange for "general information about U.S. markets."
Comments
The Apple manager accused of taking kickbacks in exchange for company information has agreed to keep secret company information from being publicly disclosed through an ongoing criminal case.
Is this the guy who already agreed to keep secret information from being disclosed - while he worked at Apple?
Is this the guy who already agreed to keep secret information from being disclosed - while he worked at Apple?
Yeah that sounds strange to me to...
lol i love this guy... shoeboxes? really now... i wish i could stash 150k in shoe boxes
It's kinda a necessity unless you want the IRS to catch wind that you are trying to rip them off. Al Capone committed tons of crimes that were horribly violent - all of which the police never went after (for various reasons like corruption). What did he get convicted of? Tax evasion - he couldn't hide his ill gotten profits since he couldn't legally report them - of course he didn't file at all...
Why would anyone take the word of a crook.
No one. He agreed to keep some of the early trial process sealed.
At this level, He should have gotten a second mortgage on his home, bought a business with it, laundered the money though the business, paid off both his mortgages in a year or three, fixed his house, sold it, and repeat, until it was all disposed of. Real estate is the best way to launder in our country.
Is this the guy who already agreed to keep secret information from being disclosed - while he worked at Apple?
Yep.
Basically this whole agreement thing is required to avoid a mistrial. They can't hide trade secrets that are pertinent to the case unless both sides agree to it. Otherwise Devine's lawyers could have cause for an appeal over that issue. And unless it is in writing that both sides won't reveal the details, his lawyers could blurt out whatever they want during the trial, making it public record etc.
So they both agree not to say anything that is still a trade secret is basically all it is about. Legal Mumbo Jumbo
Real estate is the best way to launder in our country.
I thought bars were.
Real estate is the best way to launder in our country.
I've learned something new today
At this level, He should have gotten a second mortgage on his home, bought a business with it, laundered the money though the business, paid off both his mortgages in a year or three, fixed his house, sold it, and repeat, until it was all disposed of. Real estate is the best way to launder in our country.
That sounds like a good way to do it. What other methods are there? Don't most people use a third party accomplice?
A business like a bar is a great idea. But it is pretty labor intensive. Inventory control, hiring issues, etc. But it might be a good idea for this amount of money. But nothing beats shell companies buying real estate. Except owning a bank. Ask any major drug lord, or large gun runner.
Real estate is good because it is potentially very expensive. I guess I could see someone buying a large apartment complex and laundering their cash via sham tenants. Take the cash out of your ill-gotten-gain pocket, and put it into your upstanding landlord pocket. That could add up quickly, depending on how many complexes are involved.
The guy could have done that with a two-family house, while enjoying both apartments. He could also "spend" on "home improvements" (while also helping his buddy who launders cash through his "contracting business") while in reality pocketing more of his cash. Then he could "sell" the place to a sham buyer, and pocket all the "profits".
Wow. I never really thought about this stuff. My guess is that in some countries, all this can be done easily and secretly.
Real estate is good because it is potentially very expensive. I guess I could see someone buying a large apartment complex and laundering their cash via sham tenants. Take the cash out of your ill-gotten-gain pocket, and put it into your upstanding landlord pocket. That could add up quickly, depending on how many complexes are involved.
The guy could have done that with a two-family house, while enjoying both apartments. He could also "spend" on "home improvements" (while also helping his buddy who launders cash through his "contracting business") while in reality pocketing more of his cash. Then he could "sell" the place to a sham buyer, and pocket all the "profits".
Wow. I never really thought about this stuff. My guess is that in some countries, all this can be done easily and secretly.
In places like India, many small businesses and self employed people generate undeclared cash. So do officials in positions of power. Nobody really trusts paper money with some funny pictures on it. Most folks tend to buy Gold coins, jewelry. For small amounts, it is easy to deck out the wife and call the stuff heirlooms. In places like Mumbai, Gold can be bought no questions asked from trusted vendors and assayed.
In these countries, the biggest tax is the inflation tax of fiat money counterfeiting by the government. Income taxes are just a one time 40%. The killer of the any kind of savings in the unrestricted expansion of fiat money - aka gumment counterfeiting!
Is this the guy who already agreed to keep secret information from being disclosed - while he worked at Apple?
Apparently, yes. Just funny!
Deposing of large amounts of cash is always a problem. Keeping it in a shoebox, or hid on property is pretty common. You have to have a bank behind you to really commit large cash intensive crime. So for example, when a Mexican Drug cartel moves 5 tractor trailers of cash out of the states, and into Mexico (as was recently reported) how would you assume they handle it? It is estimated they hand out 100 million cash a month for bribes (as was recently reported) , but that leaves a few tractor trailers worth that needs to be laundered. We can't all own banks, particularly at the low level of corruption reported here.
At this level, He should have gotten a second mortgage on his home, bought a business with it, laundered the money though the business, paid off both his mortgages in a year or three, fixed his house, sold it, and repeat, until it was all disposed of. Real estate is the best way to launder in our country.
in NYC i've heard the best way is taxi medallions. the rate of return is OK, there is cash flow and you don't have to work to generate the cash. not unusual to drive through a neighborhood with million dollar homes and see taxi's parked in the garage
Hahaha. Apple really need to tighten up security. Although I guess they can't do much more apart from making the apple hq a max security prison
Just STFU. We have enough idiocy in this forum already.
Is this the guy who already agreed to keep secret information from being disclosed - while he worked at Apple?
Apparently, yes. Just funny!
Not really. This is more aimed at his lawyers, but because it has to do with his case, it is "officially" aimed at him. This also makes further info divulging a criminal matter rather than just a civil matter with Apple. Up through now his case is about the kickbacks, not the information.
Is this the guy who already agreed to keep secret information from being disclosed - while he worked at Apple?
Get a really good lawyer and make a stand that he was wimpy informing potentail partners on upcoming product to determine assesories, price points, distribution (ie, could they handle it), and show that everything was done with Apples best interests at heart and he may have breached the NDA to determine delivery, cost to price point, level of distribution. How many units can they deliver on. Just a thought.