A Former Apple employee confessed to committing fraud and conspiracy to defraud Apple of over $17 million overtime period of 7 years. Dhirendra Prasad who was employed by Apple in 2008, in a written plea agreement on November 1, said that he worked as a buyer in Apple’s Global Service Supply Chain for the most part of his tenure. His responsibilities involved purchasing parts and services for Apple from vendors.
Prasad confessed to defrauding Apple starting as early as 2011 by taking kickbacks, inflating invoices, stealing parts, and causing Apple to pay for items and services it never received. Prasad admitted to running this forgery through 2018. The fraud resulted in a loss to Apple of more than $17 million.
What was the scam exactly?
Prasad conducted multiple frauds with the company of which one involved him shipping motherboards from Apple’s inventory to CTrends, a company run by his accomplice named Don M. Baker in 2013.
Baker dissembled the motherboard and harvested various components from it which were sold back to Apple upon placing purchase orders by Prasad for Apple. Once the items were shipped, CTrends filed invoices for those parts for which Prasad processed payment from Apple. As a result, Apple had to pay for its own products.
In addition to this, Prasad also admitted to be engaged in tax fraud by funnelling illicit payments from Hansen directly to Prasad’s creditors. Prasad also caused a shell company to issue sham invoices to CTrends as a cover-up for Baker’s illicit payments to Prasad and to allow Baker to claim hundreds of thousands of dollars of unjustified tax deductions. These schemes resulted in an IRS loss of more than $1.8 million.
Prasad pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud which attracts a maximum sentence of 20 years in prison. However, any sentence following conviction would be imposed by the court only after consideration of the US Sentencing Guidelines and the federal statute governing the imposition of a sentence.