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Apple scammed for millions! Former employee sentenced to 3 years in prison, ordered to pay this much


Apple has announced that an employee of Indian origin has been sentenced to three years in prison for siphoning off $17 million ( 138 crore) from the company. The individual, named Prasad, worked as a buyer in Apple’s global service supply chain from 2008 to 2018 and was charged in March 2022.

As per the press release shared by the United States’ attorney’s office, Prasad made Apple pay for products that were never received, resulting in the fraudulent transfer of funds. Prasad pleaded guilty to conspiring to defraud Apple and related tax crimes in November of the previous year and has been ordered to pay over 19 million dollars in restitution to the company.

According to the report, Prasad has confessed to several illicit practices that allowed him to siphon funds from Apple, including accepting kickbacks, stealing parts, inflating invoices, and charging the company for undelivered goods. He also admitted to colluding with the owners of two vendor companies to carry out these fraudulent activities and evading taxes on the profits.

The US Department of Justice has accused Prasad of leveraging his position at Apple to gain insider knowledge of the company’s fraud detection methods, which he then used to conceal his illicit actions.

During his 10-year tenure at Apple, Prasad was responsible for procuring parts for the repair of older devices still under warranty. Alongside this role, he collaborated with two companies that supplied parts to Apple and, in collusion, they defrauded the company of over $17 million. In addition to this fraudulent activity, Prasad failed to report and pay taxes on the income he earned through these unlawful practices.

The government’s sentencing memorandum indicates that Prasad held a position at Apple that provided him with significant autonomy to make decisions that would benefit the company. Unfortunately, Prasad abused this position of trust and utilized his power to enrich himself at Apple’s expense, all while receiving substantial compensation from the company in the form of salary and bonuses.

Moreover, the press release highlights that Prasad exploited his insider knowledge of Apple’s fraud detection methods to design his criminal schemes to evade detection.

Although Prasad held a desirable position at Apple that granted him authority to make decisions that would benefit the company, he instead opted to exploit his power to amass personal wealth, resulting in significant financial losses for Apple. Prasad’s actions were even more egregious given that he possessed insider knowledge of how Apple detected fraudulent activities, which he used to evade detection and continue his illicit activities. As a result, Prasad’s fraudulent actions caused severe harm to Apple’s financial health.

As a consequence of his actions, Prasad has been sentenced to three years in prison and is obligated to return all the funds and assets he obtained through his fraudulent schemes against Apple. Additionally, he is required to repay the taxes he failed to pay on the ill-gotten profits. Following his release from prison, Prasad will be under close supervision for another three years. The individuals responsible for apprehending and prosecuting Prasad are Michael G. Pitman and Karen Beausey, who collaborated with the Internal Revenue Service (IRS) to investigate Prasad’s fraudulent activities.

 

 

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