14 DAY TRIAL // Indicted in August 2011 over taking kickbacks from Apple’s Asian suppliers, Paul Devine pleaded guilty in a San Jose federal court to accusations of wire fraud, conspiracy and money laundering.
In April 2010, Apple reportedly found evidence of the kickback scheme on Devine’s laptop.
Various email conversations and other similar findings on the man’s computer revealed that Devine had collected kickbacks from multiple part suppliers in Asia that trusted him to provide inside information.
This information would be used by the suppliers to negotiate favorable contracts with the company behind the iPod, iPhone, and iPad, and included confidential documents such as product roadmaps, specifications, and price targets.
The suppliers would pay Devine a percentage of their profits in return for the leaked information.
Accused in an August civil suit by Apple of taking more than $1m in kickbacks from Asian suppliers, Paul Devine originally pleaded not guilty during a hearing in a San Jose federal court.
At the time, the suppliers allegedly profiting off Paul Devine’s leaks denied any wrongdoing.
Yesterday, Devine pleaded guilty, the U.S. Department of Justice said.
According to the DOJ, the plea effectively means Devine "admitted to engaging in a scheme to defraud Apple of its money or property and its right to his honest services while he was employed with the company from 2005 through 2010."
Under his indictment, Devine must also renounce more than $2.25 million in proceeds. He is believed to have caused Apple roughly $2.4 million in damages.
Facing 20 years in the slammer, as well as multiple fines, Devine is scheduled for sentencing on the 6th of June, around the time Apple will be launching the fifth-generation iPhone.
Andrew Ang of Jin Li of Mould Manufacturing in Singapore, was indicted alongside Devine.
Also named in the original complaint were Betty Wu, of Kaeder Electronics in China, the Taiwan-based Pegatron Corporation, and several other Asian companies.