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Former Apple employee pleads guilty to fraud charges

A former executive of Apple has pleaded guilty in federal court to charges of wire fraud, conspiracy and money laundering. The executive was accused of running a kickback scheme through which he accepted millions of dollars for giving inside information on Apple and Apple products to international suppliers of his employer. According to PC Magazine, the man was charged with 15 counts of wire fraud, six counts of money laundering, one count of wire fraud conspiracy and one count of engaging in transactions with criminally-derived proceeds.

According to PC Magazine, the man initially pleaded not guilty to the charges when he was indicted last August, but eventually entered into a plea agreement in which he agreed to plead guilty to one count of each statutory violation. He will be sentenced on June 6 and could face up to 20 years in prison.

Apple found evidence of the scheme on Devine's work computer and started investigating him in April of 2010. He is accused of providing suppliers of Apple with inside information on the company. The companies used the inside information on such things as details on new products or product forecasts and pricing targets to get better contracts with Apple. Then, the companies would pay a fee or "kickback" to the man that provided them with the information. U.S. attorneys say the man made more than $2.4 million between 2005 and 2010 from the deals.

Source:

Former Apple Exec Pleads Guilty to Wire Fraud Over Kickback Scheme (PC Magazine)

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