Former Apple exec gets prison sentence and $4.5 million fine for leaks

A crooked former Apple manager will serve one year in prison and pay a whopping $4.5 million fine for leaking details of future Apple products.

Paul Shin Devine faced a maximum of 20 years behind bars for selling secrets to suppliers, which allowed them to negotiate more favorable deals with Apple. Devine was a global supply manager at Apple from 2005 until his arrest in 2010.

Three years ago he pleaded guilty to wire fraud, conspiracy and money laundering after his home was raided and investigators discovered more than $150,000 in cash hidden away in shoe boxes — with more cash apparently kept in safety deposit boxes.

The reason for the lengthy delay in sentencing isn’t known, but the conviction definitely sends a message to anyone on either the Apple or supplier side who would try to traffic in illicit information for money.

Recently it was revealed that Cupertino charges suppliers an enormous $50 million per breach of its “confidentiality obligations.” With that price tag attached, you can’t help but think that Devine got off easy in some ways.

Apple recently tried to crack down on leaks in its supply chain by reportedly enlisting the help of 200 security officers in China to catch anyone selling accessories, such as cases or schematics, to people in the media.

It is thought that most — if not all — the suppliers and manufacturers Devine was leaking information to were based in Asia, specifically China, South Korea, Taiwan and Singapore.

Source: Associated Press

Via: 9to5Mac

Luke Dormehl

Luke Dormehl is a U.K.-based journalist and author, with a background working in documentary film for Channel 4 and the BBC. He is the author of The Apple Revolution and The Formula: How Algorithms Solve All Our Problems … and Create More, both published by Penguin/Random House. His tech writing has also appeared in Wired, Fast Company, Techmeme and other publications.