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Apple Partner Thought It Was Paying for Consulting

By - Source: Tom's Hardware US | B 26 comments

At least two Asian suppliers have admitted to working with an Apple midlevel manager who allegedly accepted more than $1 million in kickbacks in exchange for insider information about Apple's plans.

Paul Shin Devine yesterday pleaded not guilty to accusations that he accepted monetary compensation in exchange for providing suppliers of iPod and iPhone accessories with inside information about Apple's plans for future products.

Pegatron, the parent company of Kaeder Electronics, one of the suppliers in question, yesterday said it was looking into the matter. 

"We are investigating the case now and feel sorry about this," said spokesperson said in a statement to Reuters.

Cresyn, the company that supplies Apple with ear phones for its devices, admitted to working with Devine but said they were paying him as a consultant. An anonymous official said the company entered into a contract with Mr. Devine in 2007.

"Devine approached us first and offered to give us business consulting to help advance into the U.S. market," a Cresyn official told Reuters.

"We accepted his offer and received general information about U.S. markets, and in return we offered him a small consulting fee. But this was based on a legal contract we made with him in 2007," said the rep.

Devine was yesterday indicted for 23 counts of wire fraud, money laundering, conspiracy and accepting kickbacks. Also named in court documents is Devine's Singapore-based accomplice, Andrew Ang.

Read the full story here.

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  • 12 Hide
    distanted , August 17, 2010 10:34 PM
    The rep. delivered his remarks via an iPhone 5...
  • 11 Hide
    Assmar , August 18, 2010 3:21 AM
    I know it's probably just my dyslexia but I keep reading "medieval manager" and think to myself, "that's effing hardcore."
  • 10 Hide
    hamthony , August 17, 2010 10:48 PM
    Who wouldn't take the money? What info? "Yea were still sellin glots of Iphones. Also, amerians like headphones so keep them coming." I could have been the kickback guy! Blast!
Other Comments
  • 1 Hide
    megamanx00 , August 17, 2010 10:07 PM
    Doh!
  • 6 Hide
    slipdisc , August 17, 2010 10:24 PM
    $1 million is a "small consulting fee"?
  • 12 Hide
    distanted , August 17, 2010 10:34 PM
    The rep. delivered his remarks via an iPhone 5...
  • 10 Hide
    hamthony , August 17, 2010 10:48 PM
    Who wouldn't take the money? What info? "Yea were still sellin glots of Iphones. Also, amerians like headphones so keep them coming." I could have been the kickback guy! Blast!
  • 4 Hide
    frye , August 17, 2010 10:54 PM
    slipdisc$1 million is a "small consulting fee"?


    Supposedly there's like 10 different companies involved, so its not just them.
  • 9 Hide
    gm0n3y , August 17, 2010 11:13 PM
    Is Pegatron one the new Transformers?
  • -7 Hide
    70camaross396 , August 17, 2010 11:36 PM
    thats ok, Pegatron probably sub contrated the manufacture of the Apple ear buds to the and even lower bidder, who made them out of melamine and lead based paint.... all you Ipod lovers are getting ear cancer now!
  • 2 Hide
    mikem_90 , August 17, 2010 11:53 PM
    Bribery happens worldwide. It sucks, but its there.

    The only difference is that the US has found ways to hide bribes better. Instead of money in an envelope or kickbacks, its being hired for consulting jobs later on (for politicians), free business favors (for the dumb politicians).
  • 1 Hide
    cookoy , August 18, 2010 12:00 AM
    You pay consulting fees to get things rolling, and legal fees to undo all these ill advised actions.
  • 2 Hide
    dEAne , August 18, 2010 2:22 AM
    there's nothing wrong with moonlighting as long as the company you worked with allows it.
  • 6 Hide
    tacoslave , August 18, 2010 2:40 AM
    gm0n3yIs Pegatron one the new Transformers?

    well played sir well played.
  • 11 Hide
    Assmar , August 18, 2010 3:21 AM
    I know it's probably just my dyslexia but I keep reading "medieval manager" and think to myself, "that's effing hardcore."
  • 0 Hide
    m-manla , August 18, 2010 3:27 AM
    Wow. This has been know for a few days now and still no comment from Steve Jobs!!!??? Something is definitely fishy.
  • 1 Hide
    christopherknapp , August 18, 2010 3:32 AM
    M-ManLAWow. This has been know for a few days now and still no comment from Steve Jobs!!!??? Something is definitely fishy.


    There was word, the gentleman was fired. If that isn't word enough for you, I don't know what is.
  • 4 Hide
    jsc , August 18, 2010 4:23 AM
    Consulting contract. Snicker.

    I work in the Middle East - Saudi Arabia. If you are doing business here, you are paying bribes to someone, somewhere, somehow.
  • 1 Hide
    ares1214 , August 18, 2010 5:18 AM
    Apple doing bad business...anybody surprised? Is this really new news?
  • 2 Hide
    r0x0r , August 18, 2010 6:10 AM
    ares1214Apple doing bad business...anybody surprised? Is this really new news?


    It's not news to us, but I doubt it'll make it out to the Apple-pandering mainstream media.
  • 6 Hide
    Kryan , August 18, 2010 6:56 AM
    assmarI know it's probably just my dyslexia but I keep reading "medieval manager" and think to myself, "that's effing hardcore."

    I read medieval too! LOL! Does he wear armour to work?
  • 1 Hide
    bhaberle , August 18, 2010 7:19 AM
    fryeSupposedly there's like 10 different companies involved, so its not just them.

    Okay so 100,000
    assmarI know it's probably just my dyslexia but I keep reading "medieval manager" and think to myself, "that's effing hardcore."

    hahah. i saw that too.
  • 1 Hide
    thebigt42 , August 18, 2010 3:40 PM
    "Cresyn, the company that supplies Apple with ear phones for its devices, admitted to working with Devine but said they were paying him as a consultant."

    They need there money back on that consultanting fee because the ear phones SUCK!
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