Former Apple supply manager will begin jail sentence in February for passing secrets to suppliers

Will Green is news editor of Supply Management
10 January 2015

A former global supply manager at Apple will begin a jail sentence in February after admitting receiving kickbacks from suppliers for passing on confidential information about product forecasts and pricing.

Paul Devine will be jailed for one year in the US on 19 February after admitting in a plea agreement to engaging in a fraud beginning in 2007, according the US Attorney’s Office of the Northern District of California, part of the US Department of Justice.

At his sentencing on 1 December Devine was ordered to pay $4.5 million (£2.9 million) in restitution having previously pleaded guilty to wire fraud, conspiracy to commit wire fraud, money laundering and engaging in transactions with criminally-derived property. He will be supervised for three years after his release.

In the plea agreement Devine, 41, of Sunnyvale in California, admitted to passing information such as product specifications and pricing targets to suppliers and manufacturers of Apple parts.

“The scheme enabled the suppliers and manufacturers to, among other things, negotiate more favourable contacts with Apple than they would have been able to obtain without the confidential information,” said the US Attorney’s Office in a statement.

According to the statement Devine, who worked for Apple from 2005 until his arrest in 2010, admitted to receiving around $2.4 million (£1.6 million) in kickback payments. He also admitted to engaging in a conspiracy with his co-defendant Andrew Ang, who worked for several Apple suppliers in Singapore and allegedly shared the kickbacks. The US indictment against Ang remains pending.

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