US says accused Apple manager should forfeit $1M in kickbacks

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Prosecutors for the U.S. government have argued that Paul Devine, the Apple global supply manager charged in a massive kickback scheme, should forfeit all of the more than $1 million he is believed to have received in exchange for company secrets.

According to Bloomberg, prosecutors are seeking the forfeiture of about $950,000 investigators have seized from as many as six different bank accounts, though they are still tracing funds. They are also looking to obtain a Porsche Cayenne — a vehicle that starts at nearly $50,000.

Devine was granted bail in September, when he posted a $440,000 lien against his mother's home. He also paid more than $600,000 from overseas bank accounts owned by him and his wife.

Assistant U.S. Attorney Michelle Kane told U.S. District Judge James Ware that the government needs more time to analyze computers seized from Devine. Tracking the money has been difficult, but investigators have accused Devine of accepting more than $1 million in kickbacks.

Devine, who worked for Apple since 2005, is also facing a civil suit from his employer. The company also alleges that he received more than $1 million in bribes and payments for his assistance to overseas suppliers.

The 37-year-old manager has been charged with wire fraud, kickbacks and money laundering. In all, he faces 23 counts, to which he has pleaded not guilty.

Prosecutors said that each count of wire fraud, wire-fraud conspiracy and money laundering carries a 20-year prison sentence. They have alleged that Devine used his security clearance to sell confidential information to overseas suppliers, and the companies then allegedly used that knowledge to negotiate favorable contracts with Apple.

💬 13 Comments

felix01

said about 12 years ago

Yep, follow the money trail and it'll all become clear. It always works out that way.

interdyne

said about 12 years ago

Quote:

Originally Posted by AppleInsider

The 37-year-old manager has ben charged with wire fraud, kickbacks and money laundering. In all, he faces 23 counts, to which he has pleaded not guilty.

Who's ben?

Proof reading wtf

MacPro

said about 12 years ago

So does Apple get the forfeited $1M?

damn_its_hot

said about 12 years ago

Quote:

Originally Posted by digitalclips

So does Apple get the forfeited $1M?

You must be kidding - with the good ole US Govt. typically forfeitures are kept be the govt to "help fight crime" cough-cough. I read about all the seizures of goods that a made and the govt almost always gets the proceeds unless they "victim" can show a loss. I suspect that is what Apple's civil lawsuit is all about. The govt won't want be voluntarily giving any money to anybody in a case like this - its is where part of the feds crime fighting budget comes from (there is an incentive for them to catch the big drug guys with the cash, etc.).

Try getting something back that was seized also - I have a relative that purchased a boat in Florida from a US Coast Guard auction in the 80's. It had apparently been used as a smuggling boat for pot and still had a few seeds in the lower compartment. The Coast Guard came thru about 2-3 days after the purchase and was doing "random" searches. They found pot seeds (surprise) - well this was in the good ole ZERO tolerance days so the Coast Guard said they had to seize the boat. When he said he could produce papers to show that it was purchased from them if given a few hours he was given a sarcastic reply of "sure". When they papers were produced later the same day the Coast Guard officer explained that he "heard that all the time" so he didn't buy it - the boat had been seized and they would have to file the paperwork to get it back. He did same and 2 years and a couple months later was finally notified that the boat was able to be released to him - after he paid a rather large impound fee. The vessel had not been stored properly and had lost about half its value (total of $65K US) so he let it go back to auction and cut his losses. No apology no nothing - no Apple wan't be getting any money from the govt.