Former Apple employee pleads guilty to taking kickbacks
01 Mar 2011
An ex- employee of Apple Inc has pleaded guilty to multiple criminal counts on accusations of taking kickbacks from Asian suppliers.
Paul Devine, who was a global supply manager at Apple, was accused of misusing his position to pass on confidential information to help suppliers negotiate favorable contracts with the company. He served at Apple from 2005 until 2010.
The company initiated an internal investigation last year, which turned up a cache of emails between Devine and the suppliers, the company said in a civil lawsuit it filed against Devine. Later, in August, US prosecutors obtained an indictment on 23 counts.
According to the US attorney's office, Devine pleaded guilty on Monday to wire fraud, conspiracy and money laundering in a San Jose federal court. Devine further agreed to forfeit about $2.28 million in property and money.
According to Devine's attorney, Raphael Goldman, his client was a good man who made a mistake and was now trying to make amends.
Sentencing has been set for 6 June. Devine could be awarded a maximum prison term of 20 years for the wire fraud and the money laundering counts, but is expected to receive a less severe sentence.
Though Apple has withheld comment on the guilty plea, at the time of filing of the civil case, Apple had stated it had "zero tolerance" for dishonest behavior inside or outside the company.
