Dozens of Apple Employees Fired Over $152K Matching Grants Fraud Scheme
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Approximately 50 Apple employees have been fired from the Cupertino company for allegedly defrauding it via its Matching Grants program, in which the company matches 100% or 200% of the charitable donations made by its employees to various organizations.
So far, six former Apple employees in the Bay Area have been charged with tax fraud connected to fake donations. The alleged head of the fraud group, Siu Kei Kwan, instructed five employees to make donations to two charitable organizations he was involved in.
Kwan was the CEO of Hop4Kids while also being an accountant for the American-Chinese International Cultural Exchange. This provided privileged access to both organizations’ donations, which he used to pull off the scheme. When Apple employees Yathei Yuen, Yat C Ng, Wentao Li, Lichao Ni, and Zheng Chang donated thousands to the organizations, Apple would match it. However, the group of five would then have their “donations” refunded, while Kwan pocketed Apple’s matching contribution.
To ensure that all parties involved in the fraudulent scheme profited, Kwan provided services to create fraudulent tax returns so the employees would still get credit for their refunded donations.
Among the 50 employees that have been fired from Apple, six have so far been charged with criminal offenses, according to a report from India Today. It is estimated that the fraud resulted in approximately $152,000 stolen from Apple over three years. The donations were made through Benevity, a third-party platform.
The allegations suggest that some employees, in collaboration with specific nonprofit organisations — including associations reportedly linked to the Indian community — falsified donations to exploit the program.
According to these claims, employees donated funds to nonprofits, which were then matched by Apple. However, the nonprofits allegedly funnelled the original donations back to the employees, allowing them to retain Apple’s matching contributions. If accurate, this would not only breach corporate policies but also violate US tax laws, as the employees’ false claims could amount to tax fraud.
Santa Clara County has charged the group with several felonies, including grand theft, conspiracy to commit felony, grand theft, perjury, and last-but-not-least, tax fraud. Those charged could not only face jail time, they would also be forced to pay restitution and fees.
The County of Santa Clara says the six people defrauded both the Apple Matching Gifts Program, as well as the State of California.
From July 2018 to April 2021, the employees are alleged to have conspired to steal approximately $152,000 from Apple through its donation-matching program, while falsely reporting $100,000 in charitable donations as tax deductions.
“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 December. “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.”
