HIGHLIGHTS

Apple employees were discovered abusing the company’s corporate social responsibility (CSR) initiative.

Six individuals have been arrested in connection with this fraud case.

Reports indicate that a significant number of the 185 employees dismissed from Apple are of Indian nationality.

The renowned Cupertino-based tech giant, Apple, has reportedly laid off over 185 employees from its headquarters amid revelations of a financial fraud scandal involving these workers. The employees were found to have taken advantage of Apple’s corporate social responsibility program, designed to promote charitable giving among staff by matching their donations to nonprofit organizations. This program allows nonprofits to receive double the amount contributed, creating a potential for abuse.

The scheme involved employees colluding with various nonprofit organizations, tricking Apple into providing matching funds that were then returned to the employees. The fraudulent activity has led to the arrest of six employees who played significant roles in orchestrating this scam.

According to multiple media sources, a large portion of those 185 terminated employees were of Indian descent. These individuals are accused of misusing Telugu charitable organizations based in the United States to extract financial benefits. The Santa Clara County District Attorney’s Office has reported that the fraud resulted in a loss of approximately $152,000 (around Rs 1.26 crore) for Apple over a span of three years.

Reports indicate that employees fabricated donations to various nonprofit organizations, which were then matched by Apple’s generosity. Nonprofits such as the American Chinese International Cultural Exchange (ACICE) and Hop4Kids were allegedly complicit in this scheme. The employees arranged for their donations to be returned to them, while the matching funds from Apple were retained. Central to this fraudulent operation was Siu Kei (Alex) Kwan, who performed dual roles as CEO of Hop4Kids and accountant for ACICE, as noted in several reports.

The individuals facing charges in this case include Kwan, Yathei (Hayson) Yuen, Yat C (Sunny) Ng, Wentao (Victor) Li, Lichao Ni, and Zheng Chang. They are accused of falsifying donation records and utilizing these bogus transactions to exploit tax incentives, thus violating corporate ethics and U.S. tax laws. Further reports suggest that many of the dismissed employees may have collaborated with nonprofit organizations that cater to the Indian community as well.

As of now, Apple has not released any official comment regarding the situation, which leaves many aspects of this case still unaddressed.

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