How an ex-Apple employee stole $17 million from the company
What's the story
A former Apple employee has pleaded guilty to defrauding the tech giant of $17 million.
Indian-origin Dhirendra Prasad, who worked in the company from 2008-2018 pleaded guilty to mail and wire fraud charges in a federal court. Prasad is looking at up to 25 years of jail time.
Until his sentence hearing in March next year, he will remain out of custody.
Context
Why does this story matter?
Dhirendra Prasad spent a decade at Apple. He spent a major chunk of those 10 years making a fool out of the company.
It took Apple a long time before finding out what he did. Once he was caught, the curtain fell on Prasad's schemes that worked seamlessly until then.
With the plea agreement, the saga that brought shame to Apple has finally ended.
Fraud
He took kickbacks, inflated invoices, and committed theft
Prasad worked in Apple's Global Service Supply Chain department and was responsible for buying parts and services for the company from different vendors.
He said that he began defrauding the company in 2011. He admitted to committing theft, taking kickbacks, inflating invoices, and charging the company for services it never received.
Prasad's schemes continued through 2018 and cost the company more than $17 million.
Information
Prasad named co-conspirators involved in schemes
Prasad's schemes involved two co-conspirators, Robert Gary Hansen and Robert M Baker. Both owned vendor companies that engaged in business with Apple. He named the two in his plea agreement. They have been charged for their involvement in Prasad's schemes and have admitted their involvement.
Modus operandi
Prasad, Baker harvested Apple's motherboard components and sold them back
Prasad described some of his defrauding schemes. In 2013, Prasad shipped motherboards from Apple to CTrends, Baker's company. Baker harvested the components and sent them back to Apple.
At the same time, Prasad issued purchase orders for those components. He made sure that Apple paid for the parts it already owned.
Prasad and Baker then split the proceeds of the crime.
Tax fraud
Prasad also admitted to committing tax frauds
In 2016, Prasad shipped parts from Apple to Hansen's company Quality Electronics Distrbutors' warehouse in Nevada.
He was also engaged in tax fraud. Prasad funneled illegal payments from Hansen to his creditors.
He used a shell company to issue fake invoices to CTrends to conceal Baker's payments. This allowed Baker to claim hundreds of thousands of tax deductions.
Guilty
Prasad faces up to 25 years in prison
Prasad pleaded guilty to one count of mail and wire fraud for which he faces 20 years of prison time and one count of conspiracy to defraud the US, which carries a maximum five years sentence.
He also agreed to forego $5 million in assets that he acquired with the proceeds of the scheme.
His sentencing is scheduled for March 14, 2023.