In a surprising and troubling development, Apple has fired 185 employees at its headquarters in Cupertino for being involved in a sophisticated monetary fraud aimed at boosting their compensation. The fraudulent scheme revolved around Apple’s Matching Grants program, a corporate social responsibility initiative designed to match employee donations to nonprofit organizations. The employees allegedly misused this program by falsely claiming donations to nonprofits, which were then matched by Apple. The funds were funneled back to the employees, allowing them to retain both their original donations and the matching contributions from Apple.
The fraud scheme reportedly ran over three years, and the Santa Clara County district attorney’s office has charged six individuals, who defrauded Apple of approximately $152,000. The individuals charged include Siu Kei (Alex) Kwan, the ringleader, and several others from the Bay Area, including Yathei (Hayson) Yuen, Yat C (Sunny) Ng, Wentao (Victor) Li, Lichao Ni, and Zheng Chang. These individuals, including Kwan who served as both the CEO of one nonprofit and its accountant, allegedly faked donations to Hop4Kids and American Chinese International Cultural Exchange (ACICE). The donations were returned to the employees, allowing them to exploit the system for personal gain, while also using these false donations to defraud US tax authorities.
The full scale of the incident is still unfolding, with 185 Apple employees being terminated, although official details have only been released about the six individuals charged. A separate report claims that many of the fired employees are Indians and that some were allegedly involved in using certain Telugu community-based nonprofit organizations to carry out this fraud. The employees involved, as claimed by the report, would have misused the Matching Grants program, collaborating with these nonprofit organizations to falsify donations.
This scheme not only breaches Apple’s policies but also raises concerns about potential violations of US tax laws. False claims, especially with the intention of obtaining tax deductions and exploiting corporate funds, are seen as a serious offense in the US.
Apple has not made an official statement about the incident, and the full scope of the scheme continues to be investigated. However, this fraud highlights the growing risks companies face with the complexity of matching grant programs and the potential for abuse if not properly monitored.
