By Apple has terminated approximately 185 employees at its Cupertino headquarters following allegations of a sophisticated salary fraud scheme involving the company’s Matching Grants program. This program is designed to match employees’ charitable donations to nonprofit organizations, effectively doubling their contributions.
However, certain employees exploited this initiative by collaborating with specific nonprofits to falsify donations. In this scheme, employees would make donations to these organizations, which would then return the original amounts to the employees, allowing them to retain Apple’s matching contributions. This practice not only violated corporate policies but also potentially breached U.S. tax laws.Reports indicate that a significant number of the terminated employees are of Indian origin, with many allegedly misusing Telugu charitable organizations in the United States to facilitate the fraud.
The Santa Clara County District Attorney’s Office has identified six individuals involved in the scheme, charging them with defrauding Apple of approximately $152,000 over a three-year period. These individuals are:Siu Kei (Alex) Kwan, identified as the ringleader, who served as both the CEO of Hop4Kids and the accountant for the American Chinese International Cultural Exchange (ACICE). Yathei (Hayson) Yuen,Yat C (Sunny) Ng,Wentao (Victor) Li,Lichao Ni,Zheng Chang.
These individuals are accused of falsifying donations to nonprofits such as ACICE and Hop4Kids, receiving Apple’s matching contributions, and then reclaiming their original donations, thereby profiting from the scheme.Apple has not yet provided an official statement regarding the terminations, and investigations by the district attorney’s office are ongoing.
