Former Apple Exec Pleads Guilty to Wire Fraud

Back in August of 2010, midlevel Apple manager Paul Devine was accused of taking as much as $1,000,000 in kickbacks from Apple partners....

Back in August of 2010, midlevel Apple manager Paul Devine was accused of taking as much as $1,000,000 in kickbacks from Apple partners. Devine was said to have used his position as a midlevel executive at Apple to gain access to confidential information, which he would then sell on to Apple suppliers.

Between 2005 and 2010 Mr. Devine gave pricing targets, details on specifications and other information to suppliers of Apple accessories in exchange for payments. These payments were deposited into a number of different accounts, both in the U.S. and abroad. When he was arrested in August of last year, the authorities found over $150,000 stashed in shoeboxes around his home as well as about $20,000 in foreign currency.

Today, PCMag reports that Devine has pleaded guilty to charges of wire fraud and money laundering, among others. All told the former Apple staff member was charged with 15 counts of wire fraud, one count of wire fraud conspiracy, six counts of money laundering, and one count of engaging in transactions with criminally-derived proceeds. He pled guilty to one count of each statutory violation.

Bloomberg reports that as a result, the former Apple employee will forfeit $2.28 million; he’ll also be subject to further fines and up to 20 years in prison when he is sentenced on June 6. A separate civil suit filed by Apple is still pending. It was put on hold for the duration of the criminal case.

Further Reading:
Bloomberg
PCMag
Tom’s Hardware (1), (2)