Apple manager arrested (updated)

August 14, 2010: 8:17 AM ET

Accused of accepting more than $1 million in kickbacks from iPhone and iPod suppliers

Photo: Apple Inc.

A mid-level Apple (AAPL) manager was arrested Friday and charged in federal court with selling company secrets to more than half a dozen Asian suppliers, according to the San Jose Mercury News.

Paul Shin Devine, 37, of Sunnyvale, Calif., a global supply manager for Apple, and Andrew Ang, of Singapore, were named in a 23-count federal grand jury indictment for wire fraud, money laundering and kickbacks, according to the Mercury News. In a separate civil suit, Apple claimed Devine accepted more than $1 million in "payments, kickbacks and bribes" over several years.

"Apple is committed to the highest ethical standards in the way we do business," Apple spokesman Steve Dowling told the Mercury News. "We have zero tolerance for dishonest behavior inside or outside the company."

According to the Mercury News report, the indictment describes a scheme in which Devine, who was privvy to confidential information about future products through his position at Apple, transmitted that information to Asian suppliers and manufacturers, including Ang, enabling them to negotiate favorable contracts. In return, the companies paid Devine kickbacks, which he shared with Ang.


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