In a startling development, Apple has reportedly dismissed around 50 employees from its Cupertino headquarters. The terminations are the result of an investigation into alleged fraudulent activities associated with the company's charitable Matching Grants programme. The alleged fraud involved employees colluding with certain non-profit organizations, some of which are associated with the Indian community, to falsify donations and inflate their compensation.
The Matching Grants program, a corporate social responsibility (CSR) initiative by Apple, was designed to double employees' charitable contributions by matching their donations to eligible non-profits. However, it appears that some employees exploited this initiative for personal gain.
They allegedly collaborated with non-profits to fabricate donations, which were then matched by Apple. The employees reportedly received their original donations back from the charities, while pocketing Apple's matching contributions.
Among the terminated employees, six individuals have been identified by authorities in the Bay Area. These include Siu Kei (Alex) Kwan, Yathei (Hayson) Yuen, Yat C (Sunny) Ng, Wentao (Victor) Li, Lichao Ni, and Zheng Chang. The Santa Clara County district attorney's office has stated that these individuals defrauded Apple of approximately $152,000 over a three-year period, the NBC reported.
The fraud reportedly revolved around two non-profits: the American Chinese International Cultural Exchange (ACICE) and Hop4Kids. The scheme involved employees pretending to make donations, which were returned to them by the charities, with Apple's matching funds being kept by the individuals involved. The fraud also extended to tax evasion, as the perpetrators reportedly claimed these fictitious donations on their tax returns, defrauding the state of California in the process.
While Apple has not issued an official statement, the district attorney's office is continuing its investigation. Meanwhile, industry sources confirmed to International Business Times that the earlier reported figure of dismissing 185 employees is false, instead the number stands at around 50. Reports suggest that many of the fired employees are of Indian origin, with some allegedly connected to Telugu community organizations in the US, although this detail has not been confirmed by authorities.
[Correction: This article has been updated to reflect the correct number of employees fired by Apple in the alleged CSR fraud. It was previously reported to be 185 employees, but it turned out to be false upon further investigation. An official statement in the matter is awaited, but sources have confirmed that the number of employees fired is around 50. The exact figure is unknown at this moment.]
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