Apple fires employees over charity donation matching fraud
Apple has reportedly terminated approximately 50 employees at its Cupertino headquarters following an internal investigation that uncovered monetary fraud involving charity donations. Authorities in the Bay Area have identified six of the terminated employees and issued arrest warrants.
India Today:
NBC, citing the district attorney’s office in Los Angeles, notes that Apple has terminated several employees from its Bay Area offices over the misuse of its Matching Grants program.
NBC Bay Area: 6 former Apple employees charged in charitable donations scheme:
The reported scheme revolves around Apple’s Matching Grants program, a corporate social responsibility initiative designed to amplify employees’ charitable contributions by matching their donations to nonprofit organisations. The allegations suggest that some employees, in collaboration with specific nonprofit organisations — including associations reportedly linked to the Indian community — falsified donations to exploit the program.
According to these claims, employees donated funds to nonprofits, which were then matched by Apple. However, the nonprofits allegedly funnelled the original donations back to the employees, allowing them to retain Apple’s matching contributions. If accurate, this would not only breach corporate policies but also violate US tax laws, as the employees’ false claims could amount to tax fraud.
According to the Santa Clara County district attorney’s office, six individuals defrauded Apple of approximately $152,000 over three years by falsely claiming to donate to two nonprofits — the American Chinese International Cultural Exchange (ACICE) and Hop4Kids.
The individuals charged include:
– Siu Kei (Alex) Kwan, 37, of Castro Valley
– Yathei (Hayson) Yuen, 34, of San Jose
– Yat C (Sunny) Ng, 35, of Milpitas
– Wentao (Victor) Li, 38, of Hayward
– Lichao Ni, 39, of Sunnyvale
– Zheng Chang, 31, of Union City
MacDailyNews Take: The need for a good top-to-bottom housecleaning at Apple continues to grow, not to mention the clear need for a through overhaul of the company’s hiring practices and vetting procedures of potential employees.
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