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August 18, 2010

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Apple staffer pleads not guilty in kickbacks case

AN Apple Inc global supply manager pleaded not guilty on Monday to charges of accepting kickbacks from Asian companies, while prosecutors said he is a flight risk and should not be granted bail.

Paul Devine, in handcuffs and wearing an orange prison shirt, appeared in federal court in San Jose, California, with his lawyer.

Devine, 37, was charged in a federal grand jury indictment last Wednesday with 23 counts of wire fraud, money laundering, conspiracy and accepting kickbacks, court documents showed. In a separate civil lawsuit, Apple accused him of receiving more than US$1 million in payments and bribes over several years from companies that supplied iPhone and iPod accessories.

In court, a federal prosecutor argued that no bail conditions could assure Devine's appearance for trial.

US Magistrate Howard Lloyd set another bail hearing for today.

An employee at Cupertino, California-based Apple since 2005, Devine is accused of using his position at the technology company to obtain confidential information that he shared with Apple suppliers to help them negotiate favorable contracts with the parent company.

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