Apple fired around 50 employees for pay fraud, many of them Indians: a 5-point story

According to Apple reports dismissed approximately 50 employees from its Cupertino headquarters after uncovering a sophisticated scheme to misuse the Matching Grants program to inflate salaries. While US authorities have named six people and issued arrest warrants in connection with the scam, reports suggest that a significant number of those fired are Indian workers who are allegedly exploiting US charities through the Telugu scheme. Here’s a quick summary of the whole story in 5 points.

–Fraudulent misuse of Apple’s Matching Grants program

Inside sources confirmed India Today Tech that approximately 50 employees were fired by Apple from its Cupertino headquarters following allegations of fraudulent misuse of the company’s Matching Grants program. This corporate social responsibility (CSR) initiative aims to increase employee donations by giving them to nonprofit organizations. However, some employees allegedly falsified donations in cooperation with nonprofit organizations in order to exploit the program, ultimately pocketing the appropriate amount of Apple donations. Authorities in the US have identified six people who defrauded Apple of approximately $152,000 over a three-year period.

–How this plan worked

The fraud at Apple involved employees donating money to nonprofit organizations, which Apple then donated through the program. The nonprofits reportedly refunded the employees’ original donations, allowing them to keep their matching Apple funds. Additionally, the director of this nonprofit organization is reported to have written off these fictitious donations on his tax returns, leading to a potential violation of U.S. tax laws. This scheme not only violated Apple’s corporate policies, but also defrauded the state of California

–People mentioned and their alleged roles in the fraud

The Santa Clara County District Attorney’s Office charged six people with their involvement in the scheme: Siu Kei (Alex) Kwan, Yathei (Hayson) Yuen, Yat C (Sunny) Ng, Wentao (Victor) Li, Lichao Ni and Zheng Chang. Kwan, described as the ringleader, reportedly played a dual role as CEO of Hop4Kids and accountant for American Chinese International Cultural Exchange (ACICE), the nonprofit organization involved in the fraud. These nonprofits allegedly facilitated fraudulent donation applications, withholding Apple funds and defrauding state authorities.

–Engagement of Indian workers and charities in Telugu

A separate report highlighted that many of the dismissed workers were Indian nationals who were reported to have used Telugu charities in the US to carry out the fraud. These non-profit organizations, allegedly linked to the Telugu community, were allegedly involved in a scheme to create false donation records and refund money to employees. It is worth noting that none of the six accused persons is Hindu.

–Apple is silent; wider implications

Apple has not made an official statement regarding the termination or allegations. These reports sparked a discussion about the potential for abuse in CSR programs and the need for more stringent supervision. Frauds of this nature undermine the integrity of charitable initiatives and raise serious legal and ethical questions. Although the case is currently focused mainly on the 50 dismissed workers, there were earlier reports that around 185 workers had been dismissed.