Apple has reportedly fired around 50 employees from its Cupertino headquarters following accusations of fraud aimed at inflating their compensation. Six individuals have been publicly named, and arrest warrants have been issued for them. None of the six named employees are of Indian origin, but reports suggest that several employees of Indian descent may have misused Telugu charity organizations in the U.S. to carry out the fraudulent activities.
According to NBC, the alleged fraud centers around Apple’s Matching Grants Program, a corporate social responsibility initiative that matches employee donations to nonprofit organizations. It is claimed that some employees, in collaboration with certain nonprofits — including some connected to the Indian community — falsified donations to exploit the program.
The scheme allegedly worked as follows: employees would donate money to nonprofits, which Apple would match. The nonprofits would then return the original donation to the employees while allowing them to keep Apple’s matching contribution. If proven true, this would be a violation of Apple’s corporate policies and U.S. tax laws, potentially constituting tax fraud.
The Santa Clara County District Attorney’s Office has charged six individuals with defrauding Apple of approximately $152,000 over three years. The fraud involved false claims of donations to two nonprofits: the American Chinese International Cultural Exchange (ACICE) and Hop4Kids.
The individuals charged include:
- 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
- Zheng Chang, 31, from Union City
Kwan, identified as the leader of the scheme, allegedly served as the CEO of Hop4Kids and the accountant for ACICE. He is accused of orchestrating a system where employees fabricated donations. The nonprofits would then return the original donations while keeping Apple’s matching funds. Kwan is also accused of falsely claiming these donations on the defendants’ tax returns, resulting in fraud against the state of California.
A separate report by Great Andhra suggests that more than 100 Apple employees were terminated in connection with the fraud, many of whom are reportedly of Indian origin. These employees are said to have worked with nonprofits linked to the Telugu community to exploit the Matching Grants Program.
Apple has yet to issue an official statement on the matter, and the claims are still under investigation. This incident has raised concerns about the potential misuse of corporate philanthropy programs and highlighted the need for stronger oversight to prevent such fraud in the future.
