Ex-Apple exec jailed for allegedly defrauding the tech giant

legal hammer

A former Apple executive has been sentenced to one year and one day in prison (in addition to a $4.5 million fine) after he allegedly took part in a kickback scheme, siphoning off money from suppliers into his own pocket.

Ex-supply manager Paul Devine was initially arrested in August 2010 for his part in the scheme, but he wasn't sentenced until this week.

He was accused of giving valuable (but confidential) insight to Asian iPhone and iPod accessories about the iDevice maker, which resulted in them getting better deals and him making commission on the side.

A document from the US Department of Justice (DoJ) outlined the charges, saying: "Devine's job gave him access to confidential internal Apple information. In the course of the scheme, Devine transmitted confidential information, such as product forecasts, pricing targets and product specifications, to suppliers and manufacturers of Apple parts.

"In return, the suppliers and manufacturers paid Devine kickbacks, including payments determined as a percentage of their Apple contracts."

Apple has also taken action against Devine, charging him with taking $1m in bribes from the suppliers in question when the case first went to court in 2010. The DOJ hasn't revealed why the amount Devine will pay has increased four-fold as yet, although one explanation could be that following the trial of those who also were involved, the amount found to be obtained illegally was higher.

At the time, Apple said in a statement: "Apple is committed to the highest ethical standards in the way we do business. We have zero tolerance for dishonest behavior inside or outside the company."

Clare Hopping
Freelance writer

Clare is the founder of Blue Cactus Digital, a digital marketing company that helps ethical and sustainability-focused businesses grow their customer base.

Prior to becoming a marketer, Clare was a journalist, working at a range of mobile device-focused outlets including Know Your Mobile before moving into freelance life.

As a freelance writer, she drew on her expertise in mobility to write features and guides for ITPro, as well as regularly writing news stories on a wide range of topics.