Apple manager pleads not guilty to kickback charges

The Apple manager who was arrested last week pleaded not guilty Monday to charges of accepting kickbacks of at least $1 million from Asian suppliers.

The U.S. Attorney’s office for the Northern District of California confirmed that Paul Shin Devine, a global supply manager for Apple, appeared in federal court in San Jose with his lawyer Monday afternoon to enter his plea.

Devine was accused last Wednesday of 23 counts of wire fraud, wire fraud conspiracy and money laundering in a federal indictment that has been unsealed but has yet to appear in the court system’s database.

Andrew Ang, an employee of a Singapore supplier, was also named in the indictment and faces the same charges.

Stories published last week by the San Jose Mercury News and the Wall Street Journal said the indictment alleged that Devine gave suppliers of iPhone and iPod accessories confidential company information in return for at least $1 million in payments.

The kickback scheme, which prosecutors said began in February 2007 and ended this month, allegedly generated up to $2.5 million in payments.

During Monday’s hearing, Assistant U.S. Attorney Michelle Kane objected to setting bail for Devine. Kane argued that Device is a flight risk, according to news service reports.

A bond hearing is set for Wednesday.

Devine also faces a civil lawsuit filed by Apple last Friday that accused its employee of breach of contract, racketeering and other violations.

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Jim Love, Chief Content Officer, IT World Canada

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