How did six ex-employees manipulate Apple’s charity programme and steal over $152K? Know here
Six former Apple employees are charged with manipulating donations to defraud the company's charitable matching programme of about $152,000. They face multiple felony charges, including grand theft. Kwan, a certified public accountant, allegedly directed the fraudulent activities.
Santa Clara County prosecutors have charged six former employees of tech giant Apple with defrauding the company's gift-matching programme for charitable donations, obtaining approximately $152,000, or around ₹1,28,00,000.
The six former employees are identified as 37-year-old Siu Kei (Alex) Kwan of Castro Valley, 34-year-old Yathei (Hayson) Yuen of San Jose, 35-year-old Yat C (Sunny) Ng of Milpitas, 38-year-old Wentao (Victor) Li of Hayward, 39-year-old Lichao Ni of Sunnyvale, and 31-year-old Zheng Chang of Union City. According to a statement by the Santa Clara County District Attorney, the accused allegedly manipulated charity donations.
In connection with the scheme, which took place between 2018 and 2021, they are charged with multiple felonies, such as grand theft, conspiracy to commit felony grand theft, perjury, and tax fraud. Due to the sums involved, the employees also face an aggravated white-collar crime enhancement.
How did the fraud happen?
Apple employees would make donations through a third-party platform, Benevity. After making the donation, Apple matched it with either 100 per cent or 200 per cent, and Benevity used the funds to give to charity.
Kwan, a certified public accountant, exploited his position with these donation amounts by reimbursing the employees and keeping the funds for himself, which violated Apple's Charity Matching policy.
Employees would claim tax deductions on this amount. Kwan would make fraudulent tax returns and boost participation by offering free or discounted tax services.
Kwan allegedly led the fraud, directing the other five accused to donate to two charities, namely the "American Chinese International Cultural Exchange (ACICE)" and “Hop4Kids.” Kwan – the CEO of Hop4Kids and accountant for ACICE.
Under the leadership of Kwan, the five other accused pretended to make donations to the American Chinese International Cultural Exchange (ACICE) or Hop4Kids. This donation amount was given back to them, and Kwan used it to keep matching Apple funds. In the tax returns, the donation amount was written as “charitable donations”.
"This case underscores our unwavering commitment to rigorously prosecuting individuals who defraud the tech community and misuse vital charitable programs and state resources," District Attorney Jeff Rosen said in the statement.
"We commend Apple for coming forward and actively collaborating with our Office to uncover this elaborate fraud."
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First Published:6 Dec 2024, 08:44 PM IST
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