A senior employee of Apple Inc. has been arrested for passing on secret information of the technology firm to its six Asian suppliers and receiving at least $1 million in kickbacks.
Paul Shin Devine, a global supply manager at Apple, was arrested on Friday. He has been charged with wire fraud, money laundering and unlawful monetary transactions, The Wall Street Journal reported.
Apple named Devine in a civil suit filed on Friday in the US District Court in San Jose, California, that includes allegations of fraud and violations of racketeering laws. He is scheduled to appear in a court in San Jose on Monday. The case also names Andrew Ang, an employee of an Apple supplier, who is accused of wire fraud and conspiracy.
"Apple is committed to the highest ethical standards in the way we do business," said an Apple spokesman, who added that the company has "zero tolerance for dishonest behaviour inside or outside of the company."
According to the court documents, Devine supplied companies such as Cresyn Co. in South Korea, Kaedar Electronics Co. in China and Jin Li Mould Manufacturing Pte. Ltd. in Singapore with confidential information that would let them negotiate favourable contracts with Apple.
In return, Devine demanded payments, which were sent to bank accounts in his wife's name in amounts that were small enough to avoid attention. He shared part of the money with Ang, who was an employee of Jin Li, and helped broker deals with Jin Li as well as others, the indictment said.
Devine has been working with Apple since July 2005 as a manager responsible for selecting and managing relationships with companies that supply Apple with parts and materials for iPods and iPod accessories.