How ex-Apple employees allegedly stole company's $152K in charity scam
What's the story
Six former Apple employees have been accused of defrauding the tech giant and the State of California in a donation theft scheme. The group allegedly exploited a loophole in Apple's Matching Gifts program, which matches employee donations to select organizations. Over the course of three years, they managed to siphon off around $152,000 from Apple.
Scam leader
The mastermind behind the scam
The alleged scam was led by Siu Kei Kwan (37), who directed five other employees to donate to two organizations he had control over. Kwan was the CEO of Hop4Kids and an accountant for the American Chinese International Cultural Exchange. His position gave him unique access to these organizations' donations, allowing him to manipulate the donation matching process for personal gain.
Fraud details
Operation and charges
The scheme saw employees Yathei Yuen, Yat C Ng, Wentao Li, Lichao Ni, and Zheng Chang donate large sums to the two organizations through a third-party platform called Benevity. Apple would match the donations (100% or 200%) as part of its program. The employees got their original contributions back while Kwan retained Apple's matched amount. To take more advantage of this, Kwan also allegedly provided services to manipulate tax returns so they could still get credit for their refunded donations.
Legal action
What are the potential penalties
The group now faces charges from Santa Clara County for grand theft, conspiracy to commit felony, perjury, and tax fraud. If found guilty, they could face jail time, restitution, and fees. District Attorney Jeff Rosen commended Apple for its cooperation in uncovering this complex fraud. He also encouraged others in the tech community to follow suit and legally contribute to charitable causes.