Ex-Apple manager pleads guilty to fraud, to hand in $2.25M

Paul Devine pled guilty in federal court to wire fraud, conspiracy and money laundering

Paul Devine, a former Apple manager accused of taking kickbacks from the company's suppliers in Asia, pled guilty in a San Jose federal court to wire fraud, conspiracy and money laundering, the U.S. Department of Justice said Monday.

The plea means he "admitted to engaging in a scheme to defraud Apple of its money or property and its right to his honest services while he was employed with the company from 2005 through 2010," the DOJ said in a statement.

Devine also agreed to forfeit more than US$2.25 million in proceeds from the scheme.

Devine collected kickbacks from several Apple suppliers in Asia that depended on him to provide them with inside information meant to help them negotiate favorable contracts with the U.S. electronics giant, the DOJ said. The information included confidential documents from Apple, such as product forecasts, roadmaps, price targets, product specifications and other data obtained from Apple's business partners. In return, these companies paid Devine a percentage of the business they did with Apple.

The loss attributable to his offenses was just over US$2.4 million, the DOJ said. Apple filed a civil case against Devine last year.

Devine is currently free on bail and will be sentenced on June 6. He faces decades in jail as well as hundreds of thousands of dollars, if not millions, in fines. Details of his plea agreement with the DOJ were not available, making it difficult to determine the possible penalty.

The investigation against Devine began in April of last year when Apple found evidence of the kickback scheme on Devine's Apple-owned laptop. The Sunnyvale, California man was indicted on Aug. 11, 2010.

Shortly after he was charged, federal agents found cash worth more than $150,000 in shoe boxes during a search of Devine's home.

Others were indicted along with him, including Andrew Ang, an employee of Singapore supplier Jin Li Mould Manufacturing. The original complaint also named Betty Wu, of Kaeder Electronics in China, which is owned by one of Apple's main suppliers, Taiwan's Pegatron Corporation. Several other Asian companies were also named in the complaint.

Join the Good Gear Guide newsletter!

Error: Please check your email address.

Tags CriminalApplelegal

Our Back to Business guide highlights the best products for you to boost your productivity at home, on the road, at the office, or in the classroom.

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Dan Nystedt

IDG News Service
Show Comments

Essentials

Lexar® JumpDrive® S57 USB 3.0 flash drive

Learn more >

Microsoft L5V-00027 Sculpt Ergonomic Keyboard Desktop

Learn more >

Mobile

Lexar® JumpDrive® S45 USB 3.0 flash drive 

Learn more >

Exec

HD Pan/Tilt Wi-Fi Camera with Night Vision NC450

Learn more >

Audio-Technica ATH-ANC70 Noise Cancelling Headphones

Learn more >

Lexar® JumpDrive® C20c USB Type-C flash drive 

Learn more >

Lexar® Professional 1800x microSDHC™/microSDXC™ UHS-II cards 

Learn more >

Budget

Back To Business Guide

Click for more ›

Most Popular Reviews

Latest News Articles

Resources

PCW Evaluation Team

Azadeh Williams

HP OfficeJet Pro 8730

A smarter way to print for busy small business owners, combining speedy printing with scanning and copying, making it easier to produce high quality documents and images at a touch of a button.

Andrew Grant

HP OfficeJet Pro 8730

I've had a multifunction printer in the office going on 10 years now. It was a neat bit of kit back in the day -- print, copy, scan, fax -- when printing over WiFi felt a bit like magic. It’s seen better days though and an upgrade’s well overdue. This HP OfficeJet Pro 8730 looks like it ticks all the same boxes: print, copy, scan, and fax. (Really? Does anyone fax anything any more? I guess it's good to know the facility’s there, just in case.) Printing over WiFi is more-or- less standard these days.

Ed Dawson

HP OfficeJet Pro 8730

As a freelance writer who is always on the go, I like my technology to be both efficient and effective so I can do my job well. The HP OfficeJet Pro 8730 Inkjet Printer ticks all the boxes in terms of form factor, performance and user interface.

Michael Hargreaves

Windows 10 for Business / Dell XPS 13

I’d happily recommend this touchscreen laptop and Windows 10 as a great way to get serious work done at a desk or on the road.

Aysha Strobbe

Windows 10 / HP Spectre x360

Ultimately, I think the Windows 10 environment is excellent for me as it caters for so many different uses. The inclusion of the Xbox app is also great for when you need some downtime too!

Mark Escubio

Windows 10 / Lenovo Yoga 910

For me, the Xbox Play Anywhere is a great new feature as it allows you to play your current Xbox games with higher resolutions and better graphics without forking out extra cash for another copy. Although available titles are still scarce, but I’m sure it will grow in time.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?