Apple Manager Arrested for Alleged iPhone Suppliers Kickback Scheme

Apple Manager Arrested for Alleged iPhone Suppliers Kickback Scheme
(AP/Russel A. Daniels)

CUPERTINO, Calif. (CBS/AP) Paul Shin Devine, a manager at Apple Inc., has been indicted by a federal grand jury in an alleged kickback scheme involving suppliers of iPhone and iPod accessories.

Police say the 37-year-old of Sunnyvale, Calif., which is located just north of Apple's headquarters in Cupertino, was arrested on Friday on charges of wire fraud, money laundering and kickbacks. The indictment had been filed under seal Wednesday.

Devine is accused of accepting more than $1 million in exchange for providing confidential information to Apple suppliers in Asia. The suppliers allegedly used the information to negotiate favorable contracts with Apple.

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

Authorities say Singapore resident Andrew Ang was one of the suppliers involved in Devine's alleged scam. Ang is also named in the federal indictment, but authorities have declined to comment on Ang's whereabouts.

Devine is being held by the U.S. Marshals Service though authorities did not make clear where. He is scheduled to appear in federal court in San Jose Monday afternoon.