Paul Shin Devine, a mid level global supply manager at Apple, has been arrested on suspicion of supplying confidential information to Asian iPhone and iPod part suppliers in exchange for money. The suppliers were then able to use the information to negotiate better deals with Apple, according to the Mercury News.
Andrew Ang of Singapore was named as a co-conspirator in the case, too. A federal Grand Jury indicted the two on 23 counts that include wire fraud and money laundering.
Apparently Mr. Devine had under the table deals going with parts suppliers in several countries such as China, South Korea, Taiwan and Singapore.
Apple doesn’t seem overly pleased with the situation. “Apple is committed to the highest ethical standards in the way we do business,” company spokesman Steve Dowling said. “We have zero tolerance for dishonest behavior inside or outside the company.”
Apple followed up those words with a lawsuit of its own against Mr. Devine. According to Apple’s civil suit, Mr. Devine accepted over a million dollars in bribes and kickbacks in the past few years.
Mr. Devine is being held by FBI and IRS authorities. He is scheduled to appear in U.S. District Court in San Jose on August 16 at 1:30-PM local time.