Former Apple Employees Used Charity Scam to Steal Over $150,000

[MacRumors]

Six former Apple employees have been charged with using a charity scheme to defraud Apple out of thousands of dollars, according to the Santa Clara County District Attorney.

Apple has a program that will match or double employee donations made to charities, and the employees came up with a plan to make fake donations and collect money from Apple.

Ringleader Siu Kei Kwan had five other Apple employees make donations to the American Chinese International Cultural Exchange (ACICE) or Hop4Kids, both of which he was associated with. After Apple matched the donations, the original money was returned to the employees, and the matched money was kept. The employees also wrote off their fake charitable donations on their tax returns, earning them additional money.

Between July 1, 2018 and April 6, 2021, the employees collected approximately $152,000 from Apple's program and overreported $100,000 in charitable contributions as tax deductions. Apple detected the fraud and brought it to the attention of the district attorney's office. From Santa Clara District Attorney Jeff Rosen:

This case underscores our unwavering commitment to rigorously prosecuting individuals who defraud the tech community and misuse vital charitable programs and state resources. We commend Apple for coming forward and actively collaborating with our Office to uncover this elaborate fraud. We encourage others in the tech community to do the same. It's the holidays. Give - legally - to help the needy, not to help yourself.

The six former Apple employees who participated in the scheme have been charged with grand theft, conspiracy to commit felony grand theft, perjury, and tax fraud. Due to the amount of money involved, they face charges under California's aggravated white-collar crime enhancement.

If convicted the six are facing jail time, fines, and fees, including restitution for the money they collected.

Article Link: Former Apple Employees Used Charity Scam to Steal Over $150,000

 

[vertsix]

The six former Apple employees who participated in the scheme have been charged with grand theft, conspiracy to commit felony grand theft, perjury, and tax fraud. Due to the amount of money involved, they face charges under California's aggravated white-collar crime enhancement.

They got what they deserved.

 

[Mr Fide]

How do these criminal masterminds get jobs at Apple?

 

[nickplee]

The human fund!

 

[LIVEFRMNYC]

iScam 😳

 

[Username-already-in-use]

I can't fathom why people who are working in well-remunerated professions decide that the money still isn't enough for them, they want more. So they have to do something messed-up like this.

 

[szw-mapple fan]

So they ruined their life and lost their six-figure salary jobs for about $25k each.

 

[ATechGuyNamedSteve]

So they ruined their life and lost their six-figure salary jobs for about $25k each.

probably were retail employees barely being paid livable wages, still not right but I get it.

 

[pradeepbabloo]

I just do not understand why folks in high paying jobs do such things for relatively small amounts. What goes on in their minds?

 

[iZac]

$150k split 6 ways over ~3 years, that's like $8k a year for a really dodgy scam. When Apple salaries seem to be $100-$200k, why would they even bother?

 

[victorvictoria]

I can't fathom why people who are working in well-remunerated professions decide that the money still isn't enough for them, they want more. So they have to do something messed-up like this.

When a reporter asked John D. Rockefeller how much money was enough, his reply was,"Just a little bit more." You'll find that to be the prevailing opinion among today's tech and real estate oligarchs.

 

[Colpeas]

I can't fathom why people who are working in well-remunerated professions decide that the money still isn't enough for them, they want more. So they have to do something messed-up like this.

the more you have, the more you require. it's nothing new.

 

[Darren.h]

I never donate any more. you never know where your money actually ends up.

I feel better buying a homeless man a foot long sub from subway to eat. my money spent achieved its purpose.

 

[GMShadow]

probably were retail employees barely being paid livable wages, still not right but I get it.

Retail employees are rarely bright enough to start their own charity and deduct that on their income taxes.

 

[jmpage2]

probably were retail employees barely being paid livable wages, still not right but I get it.

Siu Kei Kwan the ringleader was a certified public accountant and his position at Apple was Senior Director of Industrial Design, these were not "poor impoverished" retail employees.

He's a Chinese national and Chinese nationals are not brought into the United States on work visas to work retail jobs.

 

[Rogue AI]

I can’t get myself to care about former Apple employees stealing money from Apple.

 

[Yaohoo]

Not clear. If one donated $50k, Apple matched the $50k, did the charity return $50k to the employee and the charity kept the $50k? So basically employee just declared the $50k charitable deduction that wasn't made.

 

[Allen_Wentz]

Not clear. If one donated $50k, Apple matched the $50k, did the charity return $50k to the employee and the charity kept the $50k? So basically employee just declared the $50k charitable deduction that wasn't made.

Employee gives $50k to fake charity; Apple matches $50k to fake charity. Fake charity gives $50k back to employee, plus a share of Apple's matching contribution.

 

[t0rqx]

The sole reason Apple stopped with product Red and of course not wanting to donate money anymore cause business is declining.

 

[jz0309]

The six former Apple employees who participated in the scheme have been charged with grand theft, conspiracy to commit felony grand theft, perjury, and tax fraud. Due to the amount of money involved, they face charges under California's aggravated white-collar crime enhancement.

If convicted the six are facing jail time, fines, and fees, including restitution for the money they collected.

so this isn't at trial yet - can't see how of jury of peers would not find them guilty

 

[3304614]

They got what they deserved.

They haven’t gotten anything yet though.

Maybe they got fired, but (if so) that wasn’t directly stated in the article or the press release. (Only mentioned is that they are “former Apple employees”.)

 

[Dave-Z]

so this isn't at trial yet - can't see how of jury of peers would not find them guilty

While it certainly doesn't look good for them based on the facts presented here, the fact that they have not been found guilty in court begs the question as to why MacRumors did not give this article the title:

Former Apple Employees Allegedly Used Charity Scam to Steal Over $150,000

 

[williamkey123]

probably were retail employees barely being paid livable wages, still not right but I get it.

I don’t think so. I looked one of them up on LinkedIn, they worked for Apple corporate, not the retail side. I’m not going to post a link because I don’t want to dox them, but yeah.

 

[williamkey123]

So they ruined their life and lost their six-figure salary jobs for about $25k each.

Well plus about $10k in tax benefits.

 

[Gengar]

Imagine thinking you’re gonna get away with defrauding the multi-trillion dollar corporation, Apple. LMAO.