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A former Apple employee involved in the company's supply chain and responsible for making order purchases and invoicing them back to Apple has been charged by U.S prosecutors for defrauding the tech giant of over $10 million, Reuters reports.

Apple-Logo-Cash-Orange-1.jpg

According to court filings in San Jose, California seen by Reuters, Dhirendra Prasad, a former employee in Apple's supply chain, is facing five criminal counts of misusing his position as a buyer in Apple's global service supply chain to make Apple pay for items and services it never actually received.

Apple fired Prasad in December 2018 after he had worked for the company for over ten years. In the court filings, Prasad is also accused of evading taxes and is facing charges of wire and mail fraud and money laundering. His hearing is set for March 24.

Article Link: Former Apple Employee Charged With Defrauding Company of Over $10 Million
 
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armhol

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Jul 15, 2007
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A court has allowed the federal government to seize five real estate properties and financial accounts worth about $5 million from Prasad, and the government is seeking to keep those assets as proceeds of crime, the U.S. Attorney's office in San Jose said in a news release.
 

laz232

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Feb 4, 2016
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How the heck does someone manage to get $10 million into this kind of fraud before someone notices? This is insane!

They even talk about seized properties, as in, real estate... What? How? It's a little disturbing that Apple doesn't have better auditing.
Over a couple of years?
I can see it:
The goods-in, account and purchasing are possibly on different continents - and in the case of goods-in perhaps at sub-suppliers on different continents.

On a yearly 300B+ sales, 10M over a few years is <<0.001%
 

elvisimprsntr

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Jul 17, 2013
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justperry

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Aug 10, 2007
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A Google search pulls up this photo

He doesn't seem very happy in his booking photo

View attachment 1977766



One of his seized properties.

Dhirendra Prasad is an Indian name, there are lots of other images of people with that name, all Indian, the above photo is guaranteed not Indian.;)
 
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ObsidianIce

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Jun 1, 2004
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How the heck does someone manage to get $10 million into this kind of fraud before someone notices? This is insane!

They even talk about seized properties, as in, real estate... What? How? It's a little disturbing that Apple doesn't have better auditing.
It's easier than you think honestly. I worked at Apple in the supply chain management for about 6 years. There's a level of trust when you work in those positions. It's the same at a lot of companies. But also you're talking about a LOT of purchase orders. That dept handled EVERY Apple sold item , even stuff Apple doesn't produce. If you are stupid..yet smart and bold enough you can do it, and it will be a while before you're caught, but it will eventually happen. All those PO's are tracked and linked to your user ID. The financial discrepancy will eventually become big enough to get someone's attention.
 

laptech

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Apr 26, 2013
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It basically comes down to how the auditing process works. If it was all done on paper and nothing was physically checked then yes it would be very easy for someone in his position to 'cook the books' as they say but to be able to do this it requires people on the lower level of the supply chain to be incompetent at doing their job because you cannot over the years purchase $10 million of stock and no one knows there is actually no physical stock.

It would not surprise me if it all fell apart because of a change in some lower supply change manager and the new manager did what they are supposed to do, basically their job and this person noticed something was not quite right with the paperwork they were seeing and decided to investigate it and report it further up the chain of management.

I know in the electronic manufacturing company in Europe i worked for, before the start of the new tax year, a few days before the auditors came in, every part and every company asset had to be accounted for, that meant every screw, every electronic component, plastics, cardboard, reels of tape, reels of solder. Every department was given a print out list of everything that was assigned to their department and they had to account for it, Sales, Engineering, QC, HR, in house cantine. If there was too much discrepancy in what the accounts books said to what was physcially accounted for, everything was double checked again.

I assume this indepth level of auditing does not happen in the US or is it a case that it does just not with Apple.
 
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