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An alleged fundraising scheme involving six former Apple employees, a tax fraudster, and a man siphoning money from charities has defrauded Apple of an estimated $152,000 over three years.
Like many large companies, Apple matches donations made by employees to various organizations. Somehow, a group of (now former) employees allegedly found a loophole that allowed them to keep their money, take the matching donation, and claim it on their taxes.
According to a CBS report based on a Santa Clara County press release, six people defrauded the state of California and the Apple Rewards Program. The report says ringleader Siu Kei Kwan instructed five employees to donate to two organizations he had access to.
Kwan was the CEO of Hop4Kids and an accountant for the U.S.-China International Cultural Exchange, so he had privileged access to donations from both organizations. So when Yathei Yuen, Yat Si Ng, Wentao Li, Lichao Ni, and Zheng Chang donated thousands of dollars, Apple would match them, refund them, and Kwan would pocket double the amount Apple received.
The Apple program would match 100% or 200% of the donation made to the programs of choice. And to ensure that everyone involved benefits, Kwan offered tax fraud services to ensure they would still receive credit for their returned donations.
The charges brought by Santa Clara County include grand larceny, conspiracy to commit a felony, grand larceny, perjury, and tax fraud. Penalties include possible jail time, restitution, and fees.
“This case highlights our unwavering commitment to vigorously pursuing individuals who defraud the tech community and misuse vital charitable programs and government resources,” District Attorney Jeff Rosen said in a press release. “We commend Apple for coming forward and actively cooperating with our office to uncover this complex fraud. We encourage others in the tech community to do the same. It’s the holidays. Donate — legally — to help those in need, not to help yourself.”
Everything documented here is an alleged crime committed by the defendant. Trial dates have not yet been set for the theft of approximately $152,000 and falsely reported charitable contributions of $100,000 from 2018 to 2021.
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