Former Apple Employees Used Charity Scam to Steal Over $150,000
Six former Apple employees have been charged with using a charity scheme to defraud Apple out of thousands of dollars, according to the Santa Clara County District Attorney.
Apple has a program that will match or double employee donations made to charities, and the employees came up with a plan to make fake donations and collect money from Apple.
Ringleader Siu Kei Kwan had five other Apple employees make donations to the American Chinese International Cultural Exchange (ACICE) or Hop4Kids, both of which he was associated with. After Apple matched the donations, the original money was returned to the employees, and the matched money was kept. The employees also wrote off their fake charitable donations on their tax returns, earning them additional money.
Between July 1, 2018 and April 6, 2021, the employees collected approximately $152,000 from Apple's program and overreported $100,000 in charitable contributions as tax deductions. Apple detected the fraud and brought it to the attention of the district attorney's office. From Santa Clara District Attorney Jeff Rosen:
This case underscores our unwavering commitment to rigorously prosecuting individuals who defraud the tech community and misuse vital charitable programs and state resources. We commend Apple for coming forward and actively collaborating with our Office to uncover this elaborate fraud. We encourage others in the tech community to do the same. It's the holidays. Give - legally - to help the needy, not to help yourself.
The six former Apple employees who participated in the scheme have been charged with grand theft, conspiracy to commit felony grand theft, perjury, and tax fraud. Due to the amount of money involved, they face charges under California's aggravated white-collar crime enhancement.
If convicted the six are facing jail time, fines, and fees, including restitution for the money they collected.
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