Former Apple Manager Pleads Guilty In Kickback Scheme



Former Apple manager Paul Devine pleaded guilty in federal court in San Jose on Monday to a massive kickback scheme involving Apple’s supply chain.

Devine will forfeit $2.25 million in proceeds and property, the U.S. Attorney said.

Devine provided suppliers with details of Apple’s product roadmap and pricing targets in exchange for hefty kickbacks. When he was busted, feds found about $150,000 in shoeboxes under his bed and more money in foreign accounts and safe deposit boxes.

Devine originally pleaded not-guilty but later agreed to protect Apple’s trade secrets if the case came to court. That move was seen as a way to get a favorable plea bargain. Devine had faced 23 counts of wire fraud and money laundering. He plead guilty to one count of each statutory violation.

He awaits sentencing on June 6. He could face up to 20 years in jail, the U.S Attorney said.

Full press release below:

Apple Manager Accused of Kickbacks Will Protect Trade Secrets During Pretrial



Paul Devine — the former Apple global supply manager who traded insider information to accessory makers in exchange for kickbacks, $150,000 of which he stored in shoeboxes under his bed — has agreed to protect Apple’s corporate secrets in his upcoming trial, according to Bloomberg.

The protective order was composed by the San Francisco U.S. Attorney’s department, and notes that discovery in the case against Devine could bring to light material that is “intended to be kept secret and is trade secret information.”

As such, Devine has agreed to help protect any trade secrets that might be revealed during the pretrial bargaining process. However, it seems that if a plea bargain can not be reached, this information could still be presented in court, making this agreement with the prosecutor’s office more of a wheel-greasing move for a plea than a show of rediscovered loyalty and good will to Cupertino.