Apple has terminated approximately 50 employees at its Cupertino headquarters following the discovery of a fraudulent scheme involving the company’s Matching Grants program. The program was made to match employee donations to eligible non-profit organizations, but some employees allegedly exploited it to increase their compensation.
Employees worked with certain non-profit organizations to create fake donations. In this scheme, employees made donations that were later returned to them while still keeping Apple’s matching contributions. This arrangement not only breached corporate policies but also potentially violated U.S. tax laws.
The fraud is estimated to have cost Apple around $152,000 over a three-year period. In response, Bay Area authorities have charged these six individuals in connection with the fraudulent activity.
- Siu Kei (Alex) Kwan, 37, of Castro Valley
- Yathei (Hayson) Yuen, 34, of San Jose
- Yat C (Sunny) Ng, 35, of Milpitas
- Wentao (Victor) Li, 38, of Hayward
- Lichao Ni, 39, of Sunnyvale
- Zheng Chang, 31, of Union City
Kwan, identified as the alleged ringleader, served as both the CEO of Hop4Kids and an accountant for the American Chinese International Cultural Exchange (ACICE), two non-profits reportedly involved in the scam.
Neither Apple nor law enforcement have officially confirmed the identities or nationalities of all the employees involved.
The Federal Bureau of Investigation (FBI), along with the Internal Revenue Service (IRS) and the Department of Justice (DOJ), is reportedly investigating the Telugu Association of North America (TANA) for its possible involvement in the misuse of corporate matching grants, including funds from Apple.
As the investigation continues, Apple has not yet issued an official statement regarding the matter.
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