Paul Shin Devine, a global supply manager at Apple, and Andrew Ang, of Singapore, were named in a 23-count federal grand jury indictment for wire fraud, money laundering and kickbacks. The allegations assert that Devine used his mid-level manager position at Apple to obtain confidential information which he then provided to Apple's suppliers in China, Japan, Hongkong and Singapore. The information he provided potentially gave these suppliers negotiating advantages in securing contracts with Apple that were more favorable than they might otherwise have been. Devine was then handsomely rewarded in monetary payments to a series of bank accounts, some in his wife's name, and by cash payments when he visited Singapore. Devine then shared the money with Ang. Devine, a 37 year-old Sunnyvale resident is being held by the U.S. Marshals Service. The Internal Revenu Service is involved, and Apple has filed suit in civil court, alleging that Devine received over one million dollars in kickbacks over the course of several years.

Devine is scheduled to appear in court in San Jose on Monday. Apple's only official word comes from their spokesperson Steve Dowling who hasn't said much more than "We have zero tolerance for dishonest behavior inside or outside the company."

It appears that components for the iPhone and iPod were the principal items provided by the suppliers. According to the Wall Street Journal, Devine provided confidential information and internal documents to Apple parts suppliers Cresyn Co. Ltd. in South Korea, Kaedar Electronics Co. Ltd. in China and Jin Li Mould Manufacturing Pte. Ltd. in Singapore. Ang is employed by Jin Li.