Skip to main content

Apple executive Paul Devine pleads guilty in kickback scheme

Former Apple executive Paul Devine has pleaded guilty in federal court to charges of money laundering, conspiracy, and wire fraud resulting from a kickback scheme in which Devine divulged confidential Apple product information to suppliers. Devine’s scheme ran from 2005 to 2010; he would offer Apple suppliers details of Apple’s forthcoming product roadmaps, specifications, and pricing goals, and the companies would use that information in order to craft bids for contracts with Apple, knowing where they had the Cupertino company over a barrel and where they didn’t. Devine would receive payments for the info, then transfer the money between a number of bank accounts (including many overseas) to obscure evidence of his activities.

Most of the companies Devine is accused of selling information to have been described as being located in China, Singapore, Taiwan, and South Korea.

In all, Devine was charged with one count of wire fraud conspiracy, one count of engaging in transactions with criminally-derived proceeds, six counts of money laundering, and fifteen counts of wire fraud. Under his plea agreement, Devine is admiting to one count of each violation; he faces up to 20 years in prison and several hundred thousand dollars in fines. Devine has admitted to pocketing just over $2.4 million from his activities; he has forfeited money and property worth almost $2.28 million to the court and has agreed to pay restitution. Devine is currently on pre-trial release; sentencing is scheduled for June 6.

Devine was arrested back in August 2010, at which time he plead not guilty to the charges. At the time, reports claimed Devine had over $150,000 in cash stored in shoeboxes around his home.

Apple has filed a separate civil case against Devine, which is on hold pending the outcome of the criminal case.

Editors' Recommendations

Geoff Duncan
Former Digital Trends Contributor
Geoff Duncan writes, programs, edits, plays music, and delights in making software misbehave. He's probably the only member…
11 last minute Apple deals to shop before Prime Day ends
apple watch se review activity rings

Discounts on Apple products are rare but for Prime Day 2020, the company has slashed prices across the board on Amazon. If you’ve been meaning to upgrade your MacBook or your relatively old iPad or even switch to AirPods from the dusty-ol’ wired EarPods, there’s no better time. But you have to act fast, because all of these deals will expire before the day's end. Lucky for you, you won’t have to browse through heaps of listings as we’ve compiled the 11 best last-minute Apple Prime Day deals right here.
Apple AirPods with Charging Case -- $114, was $159

Apple’s base AirPods are on sale, too, and are available on Amazon for $44 off. The difference between this product and the higher-end model is that the case here doesn’t support wireless charging. Apart from that, the Apple AirPods are a no-brainer if you’re looking to upgrade to wireless earbuds. While they can connect to any Bluetooth-enabled device, they work best with an iPhone thanks to exclusive features such as instant pairing and gesture customization.

Read more
Apple squashes some iOS 14 bugs with latest iPhone update
iOS 14 App Library

Apple’s recently launched iOS 14 marks a significant upgrade for the iPhone’s operating system, with many of the new features designed to make using the handset even more fun. Once all of the bugs have been squashed, that is.

Yes, as sure as night follows day, there will always be problems with a newly released operating system as issues sneak through the beta phase of its development.

Read more
Apple expected to unveil four new iPhones, two Apple Watches later this year
Apple iPhone 11

Apple is gearing up to unveil a busy hardware lineup later this year in the fall, Bloomberg reports. The Cupertino, California-based company is said to be planning to launch a total of four new iPhone models, a pair of Apple Watch smartwatches, its first on-ear headphones, a refreshed mid-tier iPad Air, and a smaller HomePod smart speaker.

Bloomberg’s rundown falls in line with previous rumors and adds that Apple has asked its suppliers, despite the pandemic, to produce nearly the same amount of iPhones as last year.

Read more