Apple has reportedly been defrauded out of $10 million by one of its former employees. The federal authorities reported the news that the fraud made use of his supply chain buyer position to gain access to kickbacks.
Former Apple Employee Allegedly Defrauded Company of $10 Million
The fraud was worked by the former employee utilizing his supply chain buyer position in order to gain access to kickbacks. Once the former employee gained access, he would then make Apple pay for the goods and services that weren't delivered.
According to the story by AppleInsider, Dhirenda Prasad was recently charged and had worked with the company since 2008 up until 2018. As per the Internal Revenue Service and prosecutors, Pradas reportedly spent a lot of his time as a buyer being part of the Global Service Supply Chain.
Allegations Against Dhirenda Prasad As Presented in the Lawsuit
While he worked closely with vendors, the allegations exploited his position in Apple by engaging with many schemes designed to defraud the company. With that, Silicon Valley issued a press release detailing that the list of activities includes the following:
- Stealing parts
- Taking kickbacks
- Making the company pay for certain items and services that never happened or were never received
The five charges filed against Prasad include money laundering, fraud, and even tax evasion. All of these cases carry a five to 20 years maximum sentence.
Authorities Given Go Signal to Seize $5 Million in Cash and Property from Prasad
As a result of the fraud, Apple has reportedly lost over $10 million in total due to Prasad's alleged schemes. The official case is yet to begin, and Prasad is now getting ready to face his first court appearance regarding the allegations in the US District Court located in San Jose.
The feds have already obtained permission from the court to seize $5 million from Prasad, both in cash and property. The amount seized from Prasad was done in order to keep Prasad's assets as a "process of crime."
Two Other Individuals Involved in the Alleged Defraudation of Apple
Prasad is not the only person being linked to the alleged defraud case that made Apple lose $10 million. As of the moment, two other men that were based in California have also been pinpointed to the particular scheme.
As per authorities, the two owned the companies that were supposedly sold to Apple and were involved as conspirators of Prasad when it came to money laundering and fraud. As per authorities, both of them have "admitted their involvement in the case."
The two men linked to Prasad were charged in different federal cases. The case against Prasad, however, is still an unfolding story.
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This article is owned by Tech Times
Written by Urian B.
