Apple filed a civil lawsuit earlier this month against Paul Shin Devine, 37, an Apple Inc. global-supply manager, alleging breach of contract, breach of fiduciary duty and racketeering.

Devine is accused of providing Apple's suppliers and manufacturers with confidential information that enabled them to win better contracts from Apple. Devine received more than $2.5 million in kickbacks from suppliers in exchange for the information. The suppliers included Jin Li Mould Manufacturing Pte. of Singapore, Kaedar Electronics Co. of China, and Cresyn Co. of South Korea. Devine has been participating in this scheme since February 2007.

Apple is seeking the return of illegal profits, as well as other damages, and an order barring the misappropriation of its confidential information.

Apple spokesman Steve Dowling stated that Apple has zero tolerance for any form of dishonest behavior.

Devine was paid $614,000 a year in salary and $51,076 in bonuses in his position at Apple. Devine also received 4,500 Apple stock options and 900 shares of restricted stock over a five-year period.

In addition to Apple's civil suit, Devine was also indicted by a federal grand jury in California for 23 counts of money laundering, wire fraud and wire fraud conspiracy. According to prosecutors, each count of these charges could potentially result in a 20-year prison sentence.

The indictment claims that Devine shared some of the proceeds with Andrew Ang, who was an employee of Jin Li. Ang left the company in 2008 and Jin Li has not been served with any lawsuits, according to the company.

Devine allegedly used many foreign and domestic bank accounts to receive payments. He also registered a company with the California Secretary of State and used code words to disguise the source of the fraudulent funds.  

Source: SFGate.com "Apple Manager Indicted for Fraud, Money Laundering" 8/15/10