Apple Workers Alleged Kickback Scheme: Little Return for Lots of Risk

An Apple supply chain manager is accused of feeing inside information to suppliers in exchange for about $1 million.

Channel Partners

August 16, 2010

1 Min Read
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Maybe Apple Inc. needs to pay its people better. At least, thats what were thinking as media outlets report that an Apple supply chain manager fed inside information to suppliers in exchange for about $1 million.

Paul Shin Devine allegedly funneled confidential data to Apple vendors in Asia so those companies could negotiate favorable terms and win more Apple business. Devines job made him privy to product forecasts, pricing, development plans and other sensitive knowledge. In an indictment unsealed on Aug. 13, Devine is charged with purposely conspiring with Andrew Ang of Singapore, a Jin Li worker who is alleged to have brokered deals with his employer and Devine.

First, were wondering how Devine thought he would get away with the scheme (if, of course, the charges prove true). Apples power is on par with that of Homeland Securitys. A few bank accounts opened in Devines wifes name arent going to cover any tracks.

Second, only $1 million? Really? To be split between Devine and Ang? To share $1 million since February 2007 seems like very little money for very big effort, considering the consequences. Either Devine, if hes guilty, could use self-esteem therapy or Apple needs to reconsider its pay scale. And considering what it charges for iPods, iPhones, Macbooks and so on, Apple can afford to splurge on its workers. But heck, were talking about a company that doesnt even believe in shareholder dividends

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