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Apple Partner Thought It Was Paying for Consulting

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.

  • megamanx00
    Doh!
    Reply
  • slipdisc
    $1 million is a "small consulting fee"?
    Reply
  • distanted
    The rep. delivered his remarks via an iPhone 5...
    Reply
  • hamthony
    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!
    Reply
  • frye
    slipdisc$1 million is a "small consulting fee"?
    Supposedly there's like 10 different companies involved, so its not just them.
    Reply
  • gm0n3y
    Is Pegatron one the new Transformers?
    Reply
  • 70camaross396
    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!
    Reply
  • mikem_90
    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).
    Reply
  • cookoy
    You pay consulting fees to get things rolling, and legal fees to undo all these ill advised actions.
    Reply
  • dEAne
    there's nothing wrong with moonlighting as long as the company you worked with allows it.
    Reply