Apple has reportedly terminated 185 employees at its Cupertino headquarters after finding a monetary fraud scheme that allegedly exploited its Matching Grants program.
The fraud, aimed at boosting employee compensation, has prompted authorities in the Bay Area to issue arrest warrants for six individuals, none of whom are of Indian origin.
However, reports suggest a significant number of the terminated employees may be Indian nationals connected to Telugu charitable organizations in the U.S.
Allegations of Fraud
The alleged scheme involved employees falsifying charitable donations to nonprofit organizations.
Through Apple’s Matching Grants program, which matches employee donations to approved nonprofits, the employees reportedly collaborated with these organizations to have their “donations” refunded to them while keeping Apple’s matching contributions. This fraudulent setup also included false tax deductions, potentially breaching U.S. tax laws.
According to the Santa Clara County district attorney’s office, the fraud spanned three years and cost Apple approximately $152,000. Two nonprofits, the American Chinese International Cultural Exchange (ACICE) and Hop4Kids, have been named in connection with the scheme.
Six Individuals Charged
Authorities have charged six individuals for orchestrating the alleged fraud scheme linked to Apple’s Matching Grants program.
Those charged include Siu Kei (Alex) Kwan, 37, of Castro Valley, identified as the ringleader, who served as both the CEO of Hop4Kids and the accountant for ACICE. Others charged are 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; and Zheng Chang, 31, of Union City.
Kwan, identified as the ringleader, served as the CEO of Hop4Kids and the accountant for ACICE. Investigators allege he facilitated the fraudulent donations and retained Apple’s matching contributions.
Majority Indian Employees Fired
A Great Andhra report claims that many of the terminated employees were Indian nationals. The report alleges that some of these employees exploited Telugu charitable organizations in the U.S. to carry out similar fraudulent activities.
However, no official details about their involvement have been released by Apple or law enforcement.
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