Apple Terminates 185 Employees Over Fraudulent Charity Scheme

Tech giant Apple has dismissed 185 employees following an investigation into a fraudulent Charity scheme tied to its Matching Grants programme, a corporate social responsibility (CSR) initiative. The scheme reportedly involved employees manipulating donation records to boost their compensation.

According to various reports, including India Today and NBC, the scam was allegedly planned with the aid of some charities, some of which are claimed to be affiliated with the Indian community. The employees who were let go were discovered to have been working in tandem with the charities to forge donations. Apple’s Matching Grants program doubles the charitable contributions of employees by matching dollar for dollar their donations to eligible nonprofits.

It was found out that employees pretended to donate to select non-profits, which returned the original donations to the employees while keeping Apple’s matching contributions. The scheme also involved tax deductions that were not real; hence, the participants evaded taxes on the fictitious donations.

Among them, there are six people who hail from the Bay Area, identified as the masterminds behind the case: Siu Kei (Alex) Kwan, 37, from Castro Valley; Yathei (Hayson) Yuen, 34, from San Jose; Yat C (Sunny) Ng, 35, from Milpitas; Wentao (Victor) Li, 38, from Hayward; Lichao Ni, 39, from Sunnyvale; and Zheng Chang, 31, from Union City. Kwan, who’s considered the mastermind, was the head of Hop4Kids, a nonprofit, and the treasurer of American Chinese International Cultural Exchange (ACICE), another nonprofit targeted in the scheme. According to the Santa Clara County district attorney’s office, this scam bilked Apple of $152,000 over three years.

According to Great Andhra reports, the majority of those whose jobs have been cut appear to be Indian nationals who supposedly have associations with Telugu organizations in America. However, it is reported that the officials cannot confirm these claims.

The fraudulent schemes not only touched the Apple Matching Grants program but also involved tax fraud against the state of California. Apple has issued no official comment, but Los Angeles County District Attorney officials have confirmed the investigation is in progress.

It cast a shadow over Apple’s Matching Grants programme, thereby raising questions regarding oversight and security in CSR initiatives. It is also a question of ensuring that charitable contributions do not lack transparency and accountability. This incident becomes a wake-up call for all corporations around the world to improve safeguards against fraud and misuse in philanthropic programmes.