Paul Shin Devine, a global supply manager at Apple, has been arrested on suspicion of taking over a million dollars in kickbacks from six Asian suppliers of iPhone and iPod accessories, the Mercury News reports. Also named in the case is Andrew Ang of Singapore.
Devine is said to have used his position as a midlevel executive at Apple to gain access to confidential information. Devin would then sell this information on to Ang and other suppliers, allowing them to negotiate better contracts with Apple. Mercury News reports that the payments were received via numerous U.S. and foreign bank accounts and a front company, and shared with Ang.
The 37-year-old is being held by the U.S. Marshals Service and will appear in the U.S. Northern District Court in San Jose at 1:30 p.m. today.
An Apple spokesperson reaffirmed the Cupertino-based company's zero-tolerance policy for dishonest business practices.
"Apple is committed to the highest ethical standards in the way we do business," Apple's Steve Dowling said. "We have zero tolerance for dishonest behavior inside or outside the company."