Massive $17 million Apple fraud lands former employee with prison time

Apple cutout outside Apple Store
(Image credit: Future)

A former Apple employee has been told that he has to pay Apple $19,270,683 in restitution and spend three years in prison after admitted stealing more than $17 million from the company.

Dhirendra Prasad pleaded guilty to conspiracy to commit mail fraud and conspiracy to defraud the United States, although two more counts were dismissed during sentencing. Those counts were related to conspiracy to commit money laundering.

Prasad was a buyer in Apple’s Global Service Supply Chain and abused that position to result in losses of more than $17 million for Apple.

Kickbacks, stolen parts, false invoices, and more

A release by the United States Attorney's Office for the Northern District of California outlines exactly what Prasad got up to. And it doesn't make for great reading. It says that Prasad was employed by Apple from 2008 through 2018.

"It was Prasad’s job as an Apple buyer to facilitate the process through which Apple bought parts to perform warranty repairs on older devices," the release says. "Prasad exploited his position and conspired with two separate Apple vendors to defraud Apple by taking kickbacks, stealing parts, inflating invoices, and causing Apple to pay for items and services it never received – resulting in a loss to Apple of more than $17,000,000." Prasad also evaded tax on his ill-gotten gains while also engaging in other conspiracies with Apple vendors.

It's unclear whether Prasad will ever pay the more than $19 million ordered, but it's said that more than $5,491,713 worth of assets have already been seized.

Even at the price of Apple's very best iPhones, Macs, and other hardware just imagine how much you could buy with the cash this guy stole.

Prasad will also serve three years of supervised release after his prison term, meaning he likely won't so much as be able to go buy a new MacBook Air without telling someone about it.

Oliver Haslam

Oliver Haslam has written about Apple and the wider technology business for more than a decade with bylines on How-To Geek, PC Mag, iDownloadBlog, and many more. He has also been published in print for Macworld, including cover stories. At iMore, Oliver is involved in daily news coverage and, not being short of opinions, has been known to 'explain' those thoughts in more detail, too.

Having grown up using PCs and spending far too much money on graphics card and flashy RAM, Oliver switched to the Mac with a G5 iMac and hasn't looked back. Since then he's seen the growth of the smartphone world, backed by iPhone, and new product categories come and go. Current expertise includes iOS, macOS, streaming services, and pretty much anything that has a battery or plugs into a wall. Oliver also covers mobile gaming for iMore, with Apple Arcade a particular focus. He's been gaming since the Atari 2600 days and still struggles to comprehend the fact he can play console quality titles on his pocket computer.