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Apple Supply Manager Arrested in Kickback Scheme Involving Accessories Manufacturers

ryanw said:
A kickback is when some gets paid additionally "under the table" for things that are outside of the scope of the agreement. It's the "under the table" part that makes it illegal. If everyone knew about the agreement along with the money exchanging hands then it wouldn't be illegal. The actual exchange of money for information is typical with licensing gigs or manufacture specs (such as ARM, etc). It's the fact that he was probably providing extra information to 3rd party developers which apple wanted secret, or favoring a specific manufacture for a task because he would receive additional income from that manufacture to either choose to go with them, or look the other way when they were breaking rules ... either way, introducing additional compensation for any of those activities is what makes it sooooo much worse than him just doing those activities... which alone would have gotten him fired at Apple.
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Oxford's definition. I have a Mac too. LOL
 
tzeshan said:
This is a myth. Do you know there is always a time lag between Jobs launch of a new prodcut and actually delivery of the product? How difficult is it for case manufacturers to retool during this time delay?
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There is not always a time lag, sometimes the products are available within a day or two. At any rate, I was thinking of when some manufacturers have accessories out before the product's existence is even announced. We have seen lots of examples of cases for products that had yet to see the light of day like iPod touch cases with camera holes. There must have been some advance knowledge leaked to the manufacturer.
 
Kickbacks: How it works is company A wants to buy a part for their widget and Kickback Joe tells company B he can make sure that company B will get the contract if they kickback a little something aka 1 mil bucks. This was common in the old union days with no show jobs. You got payed for a weeks work and kicked back a precent to the person who got you the job.
 
nagromme said:
“Kickback” seems like the wrong word. This is selling your employer’s trade secrets, whereas a kickback would be when you get your employer (or other party) to buy or hire something from a third party, and then that third party slips something back to you for making the deal happen. (And a kickback in that sense could even be legal sometimes. If not, then “bribe” might also apply! But “blackmail” doesn’t seem to be connected to this at all.)
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AAAAAAAAAAAGGGGGGGHHHHHHH!!!!!!!!
Enough nit picking already!
 
I always knew stuff like this was something that could happen, but I never imagined it would happen inside Apple. Diabolical.
 
N2PVP said:
Kickbacks: How it works is company A wants to buy a part for their widget and Kickback Joe tells company B he can make sure that company B will get the contract if they kickback a little something aka 1 mil bucks. This was common in the old union days with no show jobs. You got payed for a weeks work and kicked back a precent to the person who got you the job.
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Good explanation.
 
flopticalcube said:
There is not always a time lag, sometimes the products are available within a day or two. At any rate, I was thinking of when some manufacturers have accessories out before the product's existence is even announced. We have seen lots of examples of cases for products that had yet to see the light of day like iPod touch cases with camera holes. There must have been some advance knowledge leaked to the manufacturer.
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Apple said "The information enabled the suppliers to negotiate favorable contracts with Apple". How could the case manufacturers do that?
 
brunt said:
Looks like someones going to iJail.

Its like normal jail but with expensive design, and great usability. He can escape if he is good at exploiting PDF reader flaws. Unless of course he goes to iJail 4.0.2
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I lol'd

Awesome post!

And yeah, too bad for that guy. Hopefully he learned his lesson.
 
Eddyisgreat said:
so dumb so dumb so dumb

when are these people going to realize that dipping in the cookie jar particularly at those levels just ain't worth it. I bet he could have legitimately earned the same amount of money he received from the kickbacks with minimal effort.

now is a very bad time to be unemployed.
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Your new in this world I will infer or you have never been or done business at the federal level. Federal now that level is where you dip, I figure he will get 5 max after all is done.

Check out this link http://www.businessweek.com/ap/financialnews/D9HIPI500.htm
Look at what he did vs what he gets. hahahaha.

As for unemployment that a good question, I wonder who has been hit hard because of it. I know I have not, or my wife or any of my friends that I am close with. But that could be because most are one for or another consultants as well as up to date with what makes money.

Love to see a survey on unemployment at macrumors.

Where you don't dip is in the poor sector where your going to do 15 for a 5000 dollar theft. Get with the program if your going to do the crime its at the top level, his problem is he did not do it even bigger. Murduff him self could have walked away with billions if he just had stopped say a year or two ago, and disappeared.

A million dollars in today is nothing. And for now many years was he doing this, 3, 5, 10. What does that come out on average.
 
joneill55 said:
Say hello to "Bubba's" new prison bitch.
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Federal level, get with the program that State level he is not going there, poor people go to state level, top dogs like this guy do federal, and its still jail but its not state its actually nice. After all doctors, lawyers, and executives are there right now. :D
 
tzeshan said:
Apple said "The information enabled the suppliers to negotiate favorable contracts with Apple". How could the case manufacturers do that?
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I rather now what would apple had done if they did not have the information, what kind of monopoly like low payment strategy would they have used without the information. :rolleyes:

Or did we not see how low our great iphones really cost on average for apple to create.
 
ValSalva said:
I wonder what Apple lawyers will try to do to him in civil court.
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Relieve him of any assets he may still possess like his bank account, his home, his car, his boat, his vacation villa. And that's just for starters. Apple's lawyers will diligently search for every penny he owns and lay waste. They will have no problem putting a number on the financial damage he allegedly caused which will most certainly exceed any assets he has.
 
Sure hope Steve Jobs never becomes President. There'd be firing squads for j-walkers.:D
 
lkrupp said:
Relieve him of any assets he may still possess like his bank account, his home, his car, his boat, his vacation villa. And that's just for starters. Apple's lawyers will diligently search for every penny he owns and lay waste. They will have no problem putting a number on the financial damage he allegedly caused which will most certainly exceed any assets he has.
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Yeah, this guy's life won't be the same for a very long time.
 
V&!

And nothing of value was lost.

That was very stupid...I'm surprised people these days even bother with schemes like that...the likelihood of being caught is enormous, not to mention the obvious ethical issues. :rolleyes:
 
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