Apple has reportedly terminated around 50 employees, the majority of whom are of Indian origin, at its headquarters in Cupertino after uncovering a fraudulent scheme designed to exploit the company’s Matching Grants program.
What is Apple’s matching grant program ?
In 2018, Apple CEO Tim Cook introduced a charitable donation matching program, where the company pledged to match every dollar donated by an employee with two dollars of its own. However, this program has now become the focal point of a widespread fraud operation that allegedly manipulated the system to increase employee compensation.
The scheme, which spanned a period of three years, involved employees submitting false charitable donations, which were later refunded by the organisations involved, while the participants kept Apple’s matching contributions. The arrangement also allegedly included falsified tax deductions, leading to concerns about potential violations of U.S. tax laws.
The scheme, estimated to have cost Apple around $152,000, has prompted the Bay Area authorities to take action. Six individuals, including the alleged mastermind, have been charged in connection with the fraudulent activity. Among them is Siu Kei (Alex) Kwan, a 37-year-old resident of Castro Valley, who served as both the CEO of Hop4Kids and an accountant for the American Chinese International Cultural Exchange (ACICE), two nonprofits reportedly involved in the scam.
Alongside Kwan, five other individuals have been charged: Yathei (Hayson) Yuen, 34, from San Jose; Yat C (Sunny) Ng, 35, of Milpitas; Wentao (Victor) Li, 38, of Hayward; Lichao Ni, 39, from Sunnyvale; and Zheng Chang, 31, from Union City. These individuals are accused of orchestrating and facilitating the fraudulent donations, with Kwan allegedly taking the lead in retaining the matching contributions from Apple.
While the authorities have focused on the six individuals named in the charges, reports indicate that a significant number of the employees terminated by Apple were of Indian origin.
Reportedly, these individuals are believed to have been involved with Telugu charitable organisations in the United States, which may have played a role in the fraudulent activities. However, neither Apple nor law enforcement have officially confirmed the identities or nationalities of the employees involved.