Former Apple Manager Sentenced to One Year in Prison, $4.5 Million Fine in Leaked Secrets Case

Former Apple Global Supply Manager Paul Devine will face a year in prison and a hefty $4.5 million fine for leaking secrets of the company to various accessory manufacturers in exchange for kickbacks, reports Associated Press.

The sentencing comes over three years after Devine pleaded guilty to wire fraud, money laundering, and conspiracy in relation to the leaking of Apple secrets. At the time, Devine faced a possible twenty-year sentencing over the fraud and money laundering counts.

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(Image via 9to5Mac)

Devine was Apple's Global Supply Manager for five years, from 2005 through his arrest in August of 2010. The specifics of why Devine received a far shorter sentence than the possible twenty years he originally faced and the basis of the $4.5 million fine are unclear, as Devine's kickback amount was previously estimated at roughly $1 million.

One of the confirmed companies Devine received kickbacks from was Kaedar Electronics, which was a subsidiary of long-time Apple manufacturing partner Pegatron. Kaedar supplied Apple with iPod packing boxes starting in 2005, and admitted to paying kickbacks to an intermediary company between 2005 and 2008 in exchange for confidential Apple information that assisted certain contract negotiations with the company.


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23 months ago

OK, so he violated Apple's policy on secrecy and ethical sourcing.

Did this guy actually commit a crime? Why would the public have an interest in his incarceration?

Pubb


The typical belief that white-collar crime doesn't really hurt anyone.

I have first hand experience that white-collar crime does hurt people. It often robs them of their futures and their jobs. Companies go broke because of people like him.

We will throw someone in prison for 8 years for possession of crack cocaine while slapping someone on the wrist for what he did.

So I disagree with you.
Rating: 20 Votes
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23 months ago
Yes, but education doesn't give you ethics or morality.

Somewhat sad in a sense. With that educational background his options were many. He'll land on his feet somewhere I'd imagine.

Rating: 15 Votes
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23 months ago

Somewhat sad in a sense. With that educational background his options were many. He'll land on his feet somewhere I'd imagine.


Not likely with a criminal record based on stealing from your company.
Rating: 12 Votes
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23 months ago

OK, so he violated Apple's policy on secrecy and ethical sourcing.

Did this guy actually commit a crime? Why would the public have an interest in his incarceration?

Pubb


His crime was wire fraud and money laundering
Rating: 11 Votes
Avatar
23 months ago

Somewhat sad in a sense. With that educational background his options were many. He'll land on his feet somewhere I'd imagine.


There is no bachelors degree from MIT, Harvard or YALE that can save you when you are tagged as a fraud and a thief.

All that education, didn't teach him one iota... He had the knowledge and power to make it to the top, working hard with sacrifice. Instead he took his MIT background and try to coast his way to the top.

Good Riddance, I hope he becomes someone's sweetheart in jail.
Rating: 7 Votes
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23 months ago
Holy Shnikes! The fine I can understand, but a year in prison?

So this guy spends a year in some federal pound-me-in-the-ass prison, yet banksters who ignited a world economic collapse with their fraudulent credit default swaps get nothing? WTF?
Rating: 7 Votes
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23 months ago

OK, so he violated Apple's policy on secrecy and ethical sourcing.

Did this guy actually commit a crime? Why would the public have an interest in his incarceration?


The article says he received approximately $1M to defraud Apple.

The public has an interest in punishing people who cheat. This isn't a victimless crime. He defrauded Apple shareholders and customers, and, made a significant amount of money doing it.
Rating: 5 Votes
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23 months ago
OK, so he violated Apple's policy on secrecy and ethical sourcing.

Did this guy actually commit a crime? Why would the public have an interest in his incarceration?

Pubb
Rating: 5 Votes
Avatar
23 months ago
Man, he's going to the Federal PMITA Prison.#
Rating: 4 Votes
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23 months ago

OK, so he violated Apple's policy on secrecy and ethical sourcing.

Did this guy actually commit a crime? Why would the public have an interest in his incarceration?

Pubb


Well, of course he did. He didn't just violate Apple's policy, he profited from it.

Let's say manufacturer X wanted some information early. And X bribed Devine with $100,000 to get that information. So X gave him $100,000, Devine put it in his pocket, and sent the information to X.

Hypothetically, Devine could have send X the information with a bill from Apple for $100,000, X would have paid $100,000, and the money would have landed in Apple's bank account. So basically, the $100,000 is stolen from Apple. Maybe X would have been willing to pay $200,000 for the information if it was all legal, and only $100,000 if it was illegal. In that case, Devine actually stole $200,000 from Apple. That would be the same as someone in an Apple Store selling MacBooks for $500 each, taking them out of the store's warehouse and putting the money into their own pocket.

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I have first hand experience that white-collar crime does hurt people. It often robs them of their futures and their jobs. Companies go broke because of people like him.


Fortunately no first hand experience. There was a TV program in the UK recently, showing how that kind of thing killed a company with 50 employees who all lost their jobs, as one of multiple examples.

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Apple lost out on possible revenue. Apple's individual shareholders lost a negligible but non-zero amount of value (revenue diluted by share). He did not defraud Apple.


You could say that whenever an Apple employee takes a computer owned by Apple, sells it, and puts the money into his own pocket.

Clearly, the information was owned by Apple, and if someone was willing to pay _him_ for the information, they would have been willing to pay _Apple_ for the information, and probably more since it would have been legitimate (I would pay more for a Mac legally bought at the Apple Store than for one that an employee sneaked out through the back door). So he stole from Apple.
Rating: 2 Votes
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