An alleged donation fraud scheme cheated Apple out of approximately $152,000 over a three year span. The scheme allegedly involved six former Apple employees, an inside man, and tax fraud.
Apple matches charitable donations made by employees to various organizations. Which led to a group of (now former) company employees allegedly discovering a loophole that would allow the employees to keep their money, score a matched donation, and even claim the donation on their taxes.
CBS News reports that a release from The County of Santa Clara says the six people defrauded both the Apple Matching Gifts Program, as well as the State of California. The report says the ringleader of the fraudsters, Siu Kei Kwan had five employees make donations to two organizations he was involved in.
Kwan was CEO of Hop4Kids and an accountant for the American Chinese International Cultural Exchange, so he had privileged access to both organizations’ donations. When Yathei Yuen, Yat C Ng, Wentao Li, Lichao Ni, and Zheng Chang made thousands in donations, Apple would match it, they would be refunded, and Kwan would pocket Apple’s matched amount.
Apple’s program will match 100% or 200% of a donation made to select programs. And to ensure all parties involved profited, Kwan offered services to defraud tax returns to ensure they’d still get credit for their refunded donations.
Santa Clara County charges against the group include grand theft, conspiracy to commit felony, grand theft, perjury, and tax fraud. Participants could face jail time, while also being forced to pay restitution, and fees.
“This case underscores our unwavering commitment to rigorously prosecuting individuals who defraud the tech community and misuse vital charitable programs and state resources,” District Attorney Jeff Rosen said in the release. “We commend Apple for coming forward and actively collaborating with our Office to uncover this elaborate fraud. We encourage others in the tech community to do the same. It’s the holidays. Give – legally – to help the needy, not to help yourself.”
