A former Apple manager has pleaded not guilty to charges that he received at least $1 million in “kickbacks” from six suppliers of components for the iPhone and iPods.
Paul Shin Devine is accused of handing over confidential information about Apple’s product plans in return for the payments. Until recently Devine was responsible for selecting component suppliers.
Apple says in a separate civil lawsuit that it found emails on Devine’s laptop detailing his commission and his communications with a Singapore-based intermediary. The company has not said what prompted it to begin the investigation.
Two of the Asian companies named in the indictment have launched their own internal investigations. Taiwan’s Pegatron acknowledged that its Kaedar subsidiary had paid a commission to an intermediary, but was not sure whether this is connected to the Devine case. It said that the payments were made before it acquired Kaedar in 2008. Kaedar has supplied iPod packaging to Apple since 2005.
Singapore’s JLJ Holdings confirmed that a former employee of its Jin Li Mould Manufacturing, subsidiary was named in the indictment. It is seeking legal advice.
By contrast, South Korean earphone and headset maker Cresyn said that while it had paid Devine, it was all above board.
“An Apple manager offered to provide us with business consulting to help us advance into the US market. So we signed a normal consulting contract, which was not illegal,” Cresyn said in a statement. “We received general information about the US market but did not receive any technology-related information.”
Apple says that the three other companies involved were Singapore’s Glocom/Lateral Solutions and Fastening Technologies and Taiwan’s Nishoku Technology.
