Tech giant Apple has terminated approximately 50 employees at its Cupertino headquarters after uncovering a sophisticated fraud scheme involving the company's charitable donation matching program.
The employees allegedly manipulated Apple's Matching Grants program, which was designed to support legitimate non-profit organizations by matching employee donations. Instead, workers collaborated with certain non-profits to create fake donations, receiving their money back while keeping Apple's matched contributions.
The fraudulent activity, spanning three years, cost Apple an estimated $152,000. The scheme not only violated company policies but potentially broke U.S. tax laws.
Bay Area authorities have charged six individuals in connection with the fraud. The alleged ringleader, 37-year-old Siu Kei (Alex) Kwan of Castro Valley, served as both CEO of Hop4Kids and accountant for the American Chinese International Cultural Exchange (ACICE) - two non-profit organizations reportedly involved in the scheme.
The other charged individuals include Yathei Yuen, Yat C Ng, Wentao Li, Lichao Ni, and Zheng Chang, all Bay Area residents between the ages of 31 and 39.
Federal authorities, including the FBI, IRS, and Department of Justice, are investigating the Telugu Association of North America (TANA) for possible involvement in misusing corporate matching grants, including funds from Apple.
The company has not released an official statement as the investigation continues. The case highlights growing concerns about potential abuse of corporate charitable giving programs.