APPLE FIRED AROUND 50 EMPLOYEES FOR SALARY FRAUD, MANY OF THESE WERE INDIANS: STORY IN 5 POINTS
Apple has reportedly terminated around 50 employees from its Cupertino headquarters after uncovering a sophisticated scheme involving the misuse of its Matching Grants program to inflate their compensation. While authorities in the US have named and issued warrants against six individuals in connection with the fraud, reports suggest that a significant number of those who have been fired are Indian employees allegedly exploiting Telugu charity organisations in the US as part of the scheme. Here is a quick lowdown on the whole story in 5 points.
âFraudulent misuse of Apple's Matching Grants program
Internal sources confirmed to India Today Tech that around 50 employees were fired by Apple from its Cupertino headquarters following allegations of fraudulent misuse of the company's Matching Grants program. This corporate social responsibility (CSR) initiative is designed to amplify employee donations by matching them for nonprofit organisations. However, some employees allegedly falsified donations in collaboration with nonprofits to exploit the program, ultimately pocketing Apple's matching contributions. Authorities in the US identified 6 individuals in defrauding Apple of approximately $152,000 over 3 years.
âHow the scheme worked
The fraud at Apple involved employees donating money to nonprofits, which Apple then matched through the program. The nonprofits reportedly returned the original donations to the employees, enabling them to retain Apple's matching funds. Additionally, the executive at the nonprofits reportedly wrote off these fictitious donations on tax returns, leading to potential violations of US tax laws. This scheme not only breached Apple's corporate policies but also defrauded the state of California
âNamed individuals and their alleged roles in the fraud
The Santa Clara County district attorney's office has charged six individuals with participating in the scheme: Siu Kei (Alex) Kwan, Yathei (Hayson) Yuen, Yat C (Sunny) Ng, Wentao (Victor) Li, Lichao Ni, and Zheng Chang. Kwan, described as the ringleader, reportedly played a dual role as CEO of Hop4Kids and accountant for the American Chinese International Cultural Exchange (ACICE), the nonprofits involved in the fraud. These nonprofits allegedly facilitated false donation claims, retaining Apple's matching funds and defrauding state authorities.
âInvolvement of Indian employees and Telugu charities
A separate report highlights that among the fired employees, many were Indian nationals who reportedly misused Telugu charity organisations in the US to carry out the fraud. These nonprofits, allegedly linked to the Telugu community, were purportedly part of the scheme to create false donation records and funnel the money back to employees. Notably, none of the 6 individuals charged are Indian.
âApple remains silent; broader implications
Apple has not issued an official statement regarding the termination or allegations. The revelations have sparked discussions about the potential for misuse in CSR programs and the need for stricter oversight. Fraud of this nature undermines the integrity of charitable initiatives and raises serious legal and ethical concerns. While the case primarily focuses on 50 terminated employees now, there were reports earlier that claimed that around 185 employees were fired.
2025-01-10T06:58:00Z