An Apple manager with responsibilities for the company's contract manufacturing in Asia was arrested on Friday and charged with accepting kickbacks.
Global supply manager Paul Shin Devine was charged with accepting $1 million in kickbacks from half a dozen Asian suppliers of iPhone and iPod accessories in a federal indictment and a civil suit, the San Jose Mercury News reported. Devine allegedly was paid for sharing confidential Apple information with contractors that helped them win Apple business on favourable terms, the paper said.
Devine is charged with 15 counts of wire fraud, five counts of money laundering, one count of wire fraud conspiracy and one count of monetary transactions with criminally derived property, according to court documents.
The Wall Street Journal reports that Devine gave confidential information to companies such as Cresyn Co in South Korea, Kaedar Electronics in China and Jin Li Mould Manufacturing in Singapore. He allegedly shared the kickbacks with Andrew Ang, an employee of Jin Li who the indictment charges helped broker deals with his employer and others.
"I can't comment on anything right now," said Andric Ng, CEO of Singapore's Jin Li Mould Manufacturing, when asked about the allegations.
China's Kaeder Electronics also declined to comment and Paul Kim, an employee of South Korea's Cresyn, said there were no staff in the company's Seoul office able to answer questions regarding the allegations.
Devine is due to appear in court in San Jose today.