Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Attacks/Breaches

Apple Worker Arrested On Kickback Charges

Paul Shin Devine allegedly disclosed company secrets to Asian suppliers in exchange for payments of more than $1 million.

An Apple worker has been arrested on charges he allegedly took kickbacks of more than $1 million over a period of several years from the company's Asian suppliers in exchange for inside information about the iPhone maker's product lineup.

A federal grand jury has indicted Paul Shin Devine, 37, of Sunnyvale, Calif., along with Singapore-based alleged accomplice Andrew Ang, on 23 counts of wire fraud, money laundering, receiving kickbacks, and other charges, according to the San Jose Mercury News, which first reported the story on Friday.

Apple has also filed a civil lawsuit against Devine, who was a supply-chain manager at the company.

The investigation was led by agents from the Internal Revenue Service and the Federal Bureau of Investigation. An Apple spokesperson said the company is cooperating with the investigators.

"Apple is committed to the highest ethical standards in the way we do business," a spokesman told the Mercury News. "We have zero tolerance for dishonest behavior inside or outside the company," the spokesman said.

The newspaper reported that the companies that allegedly paid the kickbacks were not identified by name in the federal indictment. The indictment indicates they are based in various countries in Asia, including China, South Korea, Taiwan, and Singapore. The bulk of Apple's electronics manufacturing is done in those countries.

The vendors, which manufacture parts and accessories for the iPhone and iPod, supposedly benefited from the arrangement as, armed with insider information, they were better able than their competitors to tailor their products to Apple's needs and anticipate future demands.

Devine and Ang allegedly established an elaborate series of front companies and offshore accounts to cover up income received from the scheme. Devine is set to appear Monday afternoon in U.S. Northern District Court in San Jose to face the charges.

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Why Vulnerable Code Is Shipped Knowingly
Chris Eng, Chief Research Officer, Veracode,  11/30/2020
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Current Issue
2021 Top Enterprise IT Trends
We've identified the key trends that are poised to impact the IT landscape in 2021. Find out why they're important and how they will affect you today!
Flash Poll
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2020-6017
PUBLISHED: 2020-12-03
Valve's Game Networking Sockets prior to version v1.2.0 improperly handles long unreliable segments in function SNP_ReceiveUnreliableSegment() when configured to support plain-text messages, leading to a Heap-Based Buffer Overflow and resulting in a memory corruption and possibly even a remote code ...
CVE-2020-6021
PUBLISHED: 2020-12-03
Check Point Endpoint Security Client for Windows before version E84.20 allows write access to the directory from which the installation repair takes place. Since the MS Installer allows regular users to run the repair, an attacker can initiate the installation repair and place a specially crafted DL...
CVE-2020-6111
PUBLISHED: 2020-12-03
An exploitable denial-of-service vulnerability exists in the IPv4 functionality of Allen-Bradley MicroLogix 1100 Programmable Logic Controller Systems Series B FRN 16.000, Series B FRN 15.002, Series B FRN 15.000, Series B FRN 14.000, Series B FRN 13.000, Series B FRN 12.000, Series B FRN 11.000 and...
CVE-2020-5680
PUBLISHED: 2020-12-03
Improper input validation vulnerability in EC-CUBE versions from 3.0.5 to 3.0.18 allows a remote attacker to cause a denial-of-service (DoS) condition via unspecified vector.
CVE-2020-5638
PUBLISHED: 2020-12-03
Cross-site scripting vulnerability in desknet's NEO (desknet's NEO Small License V5.5 R1.5 and earlier, and desknet's NEO Enterprise License V5.5 R1.5 and earlier) allows remote attackers to inject arbitrary script via unspecified vectors.