A mid-level manager at Apple has been arrested over allegations that he accepted more than $1 million in “kickbacks” from iPhone and iPod component and materials suppliers.
MercuryNews.com reports that Paul Shin Devine, a global supply manager, was named in named in a grand jury indictment for wire fraud, money laundering and kickbacks.
The indictment says that Devine, together with an accomplice in Singapore, used a chain of overseas bank accounts to receive the payments. In return he supplied confidential information, including product road maps, that enabled companies to secure favourable contracts, the indictment says.
Companies alleged to have been involved include two subsidiaries of Asustek, The Taiwan-based firm declined to comment.
Devine will appear in court later today.
Apple, meanwhile, has filed a civil lawsuit against its now former employee.
“Apple is committed to the highest ethical standards in the way we do business,” said spokesman Steve Dowling. “We have zero tolerance for dishonest behaviour inside or outside the company.”
