Tuesday, March 1, 2011

Ex-Apple handler pleads guilty in Kickback case

A former manager of Apple has pleaded guilty in a case of greater backlash that could land him in prison for 20 years.

Paul Shin Devine, once employed by Apple as a catering Manager, admitted guilt yesterday in Federal Court in San Jose, California, on charges of wire fraud, conspiracy and money laundering. He was accused of taking bribes from suppliers of Apple in exchange for information, according to the Department of Justice of the United States.

Devine, who worked at Apple from 2005 until 2010, forecasts sent, roadmaps, product specifications and other confidential information to Asian suppliers and component manufacturers Apple, according to court documents. In return, received payments from those suppliers according to the amount of business that were able to win by Apple. Confidential information provided by suppliers that Devine helped negotiate better deals with Apple and cost the company more than $ 2.4 million, Devine admitted as part of his plea agreement.

In total, Devine was charged with 15 counts of wire fraud, one count of conspiracy, wire fraud, six counts of money laundering and one count of "engaging in transactions with criminally derived proceeds." Charges of wire fraud stems from several bank accounts in both the United States and abroad that Devine opened to hide its proceeds. Under the agreement yesterday admitted his guilt to a count of each violation.

The agreement calls for Devine give up over 2.28 million $ in cash and property. Devine still faces a maximum prison term of 20 years on wire fraud and money laundering charges. Sentencing is set for June 6.

Mr. Devine is a good man who has made a mistake, and now is trying to make amends, "his lawyer, Raphael Goldman, said yesterday, according to Reuters.

Apple has filed a civil suit against Devine, who has been suspended pending the outcome in criminal court.

The investigation started last April when Apple discovered evidence of kickbacks on portable property of Devine. Devine was arrested in August. He initially pleaded not guilty to the charges. A search of his home in Sunnyvale, California, by federal agents discovered more than 150,000 U.S. dollars in bills hidden in boxes of shoes along with $ 20,000 in other currencies.

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