In 2011, former Apple Global Supply Manager Paul Devine pleaded guilty to wire fraud, conspiracy and money laundering.
He was arrested in 2010 after his scheme that leaked confidential information to Apple Inc. suppliers and manufacturers so that they could then negotiate favorable deals for themselves was discovered. Specifically he sold Apple iPhone component secrets, and the original indictment described “a scheme in which Devine used his position at Apple to obtain confidential information, which he transmitted to Apple suppliers, including Ang. In return, the suppliers and manufacturers paid Devine kickbacks, which he shared with Ang. The information enabled the suppliers to negotiate favorable contracts with Apple, according to the indictment. The companies were not named in the indictment, but they were described as suppliers of materials designed for Apple’s iPhone and iPod products. They are located in “various countries in Asia,” the indictment said, including China, South Korea, Taiwan and Singapore.”
When originally tried, it seemed that Apple was expecting to recover $1 million from Devine, and he faced up to 20 years in prison. This past week a San Jose federal court sentenced him despite the three years since the conviction. He was given a one year sentence and a $4.5 million dollar fine. The discrepancy between sentences has been speculated by 9to5mac to be because of Devine’s help during the conviction of the people that bribed him, which was also a much higher amount than initially believed.
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