Paul Shin Devine, an Apple global supply manager, has been charged by the US federal authorities for leaking confidential information to certain suppliers in exchange for kickbacks totaling more than $1 million.
The manager leaked the confidential information to around half a dozen Asian suppliers of Apple’s iPhone and iPod accessories, in a move that unduly helped the suppliers gain an edge over others while bidding for Apple’s business.
Mr. Devine, who joined Apple 10 July 2005 with responsibility for managing relationships with suppliers of iPhone and iPod accessories, opened bank accounts in his wife’s name to receive the kickbacks.
The California-based technology giant also filed a lawsuit against Mr. Devine in San Jose federal court for violating racketeering laws. But, the indictment did not mention the names of the suppliers.
Commenting on the issue, a spokesperson for Apple said, “Apple is committed to the highest ethical standards in the way we do business. We have zero tolerance for dishonest behaviour inside or outside the company.”
The indictment also names Andrew Ang of Singapore, who allegedly involved in the racket and received a share of the kickbacks. Mr. Devine is due to appear in San Jose federal court on Monday.