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Apple supplier kickback scandal expands

updated 11:40 am EDT, Tue August 17, 2010

South Korean company implicated

The scope of a recent kickback scheme -- allegedly headed by Apple executive Paul Shin Devine -- is continuing to expand, says Reuters. A South Korean earphone and headset maker, Cresyn, is now reported to have signed a contract with Devine in 2007, paying him a "small consulting fee" in return for "general information about US markets." Cresyn produces the earbuds bundled with iPods.

Another company, Jin Li Mould Manufacturing owner JLJ Holdings, says it is also looking into claims of kickbacks. A former Jin Li worker was named alongside Devine in an indictment. Other companies said to be involved in the case include Taiwan's Nishoku Technology, and two Singaporean outfits, Glocom/Lateral Solutions and Fastening Technologies.

Devine's arrest marks one of the most serious criminal incidents Apple has had to deal with. The US government has filed 23 charges against Devine, include not just kickback allegations but conspiracy, wire fraud and money laundering. Apple has filed a separate lawsuit, accusing Devine of taking more than $1 million in illicit payments from iPod and iPhone accessory suppliers.

by MacNN Staff



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