Former Apple manager pleads guilty in kickback scheme

A former Apple manager faces up to 20 years in prison after pleading guilty Monday in federal court to charges he accepted kickbacks from suppliers. Paul Shin Devine, formerly a supply manager for the Cupertino company, was first charged in August of last year on 23 counts including money laundering, wire fraud, conspiracy, and kickbacks.

The deal reached Monday calls for Devine to only plead guilty to one charge from each of the types, meaning the sentencing set for June 6 would only involve five charges. "Mr. Devine is a good man who made a mistake, and now he's trying to make amends," his lawyer told Reuters in an interview.

In addition to Devine, another individual within the Apple supply chain was also indicted. The guilty plea means that in addition to possible jail time, Devine may also need to surrender or payback $2.28 million in money and property acquired as a result of the payments.

Devine used his clearances within Apple to obtain information that was then shared with suppliers. This information was then used to negotiate contracts, and upon their awarding a kickback was paid. The monies were then routed through an elaborate system of bank accounts to conceal their source.

Apple has also sued Devine for his involvement, accusing him of accepting over $1 million in kickback payments. That suit was placed on hold pending the outcome of the criminal case, however with the plea it is likely the case would move forward.