Apple Manager Arrested for Selling Secrets
A mid-level Apple manager was arrested Friday and charged in federal court with selling company secrets to more than half a dozen suppliers in Asia, according to a report in the San Jose Mercury News
. Paul Shin Devine, Apple's iPod Senior Operations Manager, was named in a 23-count federal grand jury indictment for wire fraud, money laundering and kickbacks, along with Andrew Ang, an employee at an Apple supplier in Singapore. Apple is also suing Devine, saying he accepted more than $1 million US in "payments, kickbacks and bribes" over several years.
The Wall Street Journal talked to an agent
at the Internal Revenue Service, who confirmed reports that Devine was arrested by US Marshals and is being held at an undisclosed location after an investigation by the FBI uncovered the scheme. According to reports, Devine would provide companies like Cresyn Co. Ltd. in South Korea, Kaedar Electronics Co. Ltd. in China and Jin Li Mould Manufacturing Pte. Ltd. in Singapore with confidential information about future Apple products. The companies would then use the information to develop parts and materials for iPods and iPod accessories and get favorable contracts with Apple. In return, Devine demanded that money be deposited in accounts in his wife’s name, in small enough amounts to avoid attracting attention. Eventually, though, Devine amassed over $1 million, part of which he shared with Ang, an employee of Jin Li.
"Apple is committed to the highest ethical standards in the way we do business," said an Apple spokesman, adding that it has "zero tolerance for dishonest behavior inside or outside of the company." Devine is scheduled to appear in US District Court on Monday to respond to the civil suit.