Former Apple employee's web of deceit netted him $10 million and fraud charges

Apple Store Cutout Nyc Update
Apple Store Cutout Nyc Update (Image credit: iMore)

What you need to know

  • A former Apple employee has been charged after they allegedly defrauded Apple out of more than $10 million.
  • Dhirendra Prasad was previously employed as a buyer at Apple.
  • Prasad now faces five criminal counts including mail fraud, money laundering, and tax evasion.

A former Apple employee has been charged by United States prosecutors after allegedly using the company's supply chain to defraud it out of more than $10 million.

Prosecutors say that Dhirendra Prasad will now face five criminal counts after exploiting his "position of trust" to collect kickbacks and more from supply chain vendors. Reuters reports that filings made with the federal court in San Jose, California, also say that Prasad evaded taxes on their ill-gotten gains. The money was also laundered before Apple fired them in December of 2018.

Prosecutors said that as an Apple buyer, Prasad negotiated with vendors and placed orders, with Apple making payments based on invoice amounts he entered into its purchasing system.Prasad allegedly defrauded Apple by taking kickbacks, stealing parts using false repair orders, and causing Apple to pay for items and services it never received.

Two owners of the companies that Prasad worked with to defraud Apple have already pleaded guilty to charges related to the situation. Prasad now faces "charges including conspiring to commit wire and mail fraud, commit money laundering and defraud the United States, as well as tax evasion."

Reuters notes that Prasad's arraignment is set for March 24. It's expected that Prasad will also need to hand over cash and property that was bought using the proceeds of the scheme.

Oliver Haslam
Contributor

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.