Arrested ex-Apple manager pleads not guilty to kickback charges

An Ex-Apple manager has been accused of leaking company secrets to Asian accessory suppliers pleaded not guilty on Monday to charges of accepting kickbacks.

The U.S. Attorney's office confirmed that 37-year-old Paul Shim Devine appeared the federal court in San Jose before U.S. Magistrate Howard R. Lloyd on Monday.

Mr. Devine was charged in a federal grand jury indictment last week with twenty-three counts of wire fraud, money laundering, conspiracy and accepting kickbacks totaling more than $1 million.

He allegedly leaked confidential information to about half a dozen Asian suppliers of Apple’s iPhone and iPod accessories to help them gain an edge over others while bidding for Apple’s business. He opened bank accounts in his wife’s name to receive the kickbacks.

The California-based Apple also filed a lawsuit against Mr. Devine in San Jose federal court for violating racketeering laws. However, the indictment did not mention the names of the suppliers.

The indictment also accused an employee of a Singapore supplier, Andrew Ang, for teaming up with Mr. Devine in his unlawful activities. But, federal officials didn’t comment on Ang's whereabouts.

A federal prosecutor argued that Mr. Devine is a flight risk and shouldn’t be granted bail.