The San Jose Mercury News is reporting that Paul Shin Devine, a mid-level Apple global supply manager, has been arrested and accused of accepting $US1 million in kickbacks from various Asian suppliers of iPhone and iPod accessories. Devine's alleged co-conspirator, Andrew Ang of Singapore, was also named in the 23-count federal grand-jury indictment.
The indictment describes a scheme in which Devine used his position at Apple to obtain confidential information, which he transmitted to Apple suppliers, including Ang. In return, the suppliers and manufacturers paid Devine kickbacks, which he shared with Ang. The information enabled the suppliers to negotiate favourable contracts with Apple, according to the indictment