An alleged donation theft scheme involving six former Apple employees, tax fraud, and an inside man funneling money away from charities robbed Apple of about $152k over three years.
Like many big companies, Apple matches donations made by employees to various organizations. Somehow, a group of employees (now former) allegedly figured out a loophole that would let them keep their money, take the matched donation, and make a claim on their taxes.
According to a report from CBS based on a release from The County of Santa Clara, the six people defrauded the State of California and Apple’s Matching Gifts Program. The report states that ringleader Siu Kei Kwan directed five employees to make donations to two organizations he had access to.
Kwan was CEO of Hop4Kids and an accountant for the American Chinese International Cultural Exchange, so he had privileged access to both organizations’ donations. So, when Yathei Yuen, Yat C Ng, Wentao Li, Lichao Ni, and Zheng Chang made thousands in donations, Apple would match it, they would be refunded, and Kwan would pocket Apple’s matched amount.
Apple’s program will match 100% or 200% of a donation made to select programs. And to ensure all parties involved profited, Kwan offered services to defraud tax returns to ensure they’d still get credit for their refunded donations.
The charges being levied by Santa Clara County include grand theft, conspiracy to commit felony, grand theft, perjury, and tax fraud. Punishments include possible jail time, restitution, and fees.
“This case underscores our unwavering commitment to rigorously prosecuting individuals who defraud the tech community and misuse vital charitable programs and state resources,” District Attorney Jeff Rosen said in the release. “We commend Apple for coming forward and actively collaborating with our Office to uncover this elaborate fraud. We encourage others in the tech community to do the same. It’s the holidays. Give – legally – to help the needy, not to help yourself.”
Everything documented here is alleged crime committed by the accused. Trial dates haven’t been set for the about $152,000 in theft and $100,000 in misreported charitable contributions from 2018 to 2021.
