Fraud Alert
Apple Fraud Scandal: 185 Employees Terminated
Apple has reportedly terminated approximately 50 employees from its Cupertino headquarters following allegations of monetary fraud aimed at inflating their compensation. Among those fired, six individuals have been publicly named by authorities in the Bay Area, with warrants issued for their arrest. While none of these six individuals are Indian, reports indicate that several fired employees of Indian origin allegedly misused Telugu charity organizations in the U.S. to carry out fraudulent activities.
According to NBC, the fraud revolves around Apple’s Matching Grants Program, a corporate social responsibility initiative that matches employees’ donations to nonprofit organizations. Allegations suggest that employees, in collaboration with specific nonprofits — including some reportedly linked to the Indian community — falsified donations to exploit the program.
The alleged scheme involved employees donating funds to nonprofits, which were matched by Apple. These nonprofits reportedly returned the original donations to the employees while allowing them to retain Apple’s matching contributions. If proven, this misconduct would violate corporate policies and U.S. tax laws, potentially constituting tax fraud.
The Santa Clara County District Attorney’s Office has accused six individuals of defrauding Apple of approximately $152,000 over three years by falsely claiming donations to two nonprofits: the American Chinese International Cultural Exchange (ACICE) and Hop4Kids.
The individuals charged include:
- Siu Kei (Alex) Kwan, 37, of Castro Valley
- 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
- Zheng Chang, 31, of Union City
Authorities identified Kwan as the scheme’s ringleader. He allegedly served as the CEO of Hop4Kids and the accountant for ACICE, orchestrating a system where employees fabricated donations. The nonprofits then returned the donated amounts while keeping Apple’s matching contributions. Kwan is also accused of falsely writing off these donations on defendants’ tax returns, defrauding the state of California.
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A separate report by Great Andhra claims that over 100 Apple employees have been terminated, with many reportedly being of Indian origin. These employees allegedly collaborated with nonprofits linked to the Telugu community to exploit the Matching Grants Program.
Apple has not issued an official statement regarding the matter, and independent verification of these claims remains pending. The incident has raised questions about the misuse of corporate philanthropy programs and highlights the need for stricter oversight to prevent such fraud.