Ex-Apple Employees Face Fraud Charges For Alleged $152K Charity Donation Scam
Half a dozen former Apple employees find themselves in hot water over an alleged scheme involving Apple's Matching Gifts Program, in which the Cupertino company matches employee contributions of money or volunteer time to eligible charities. According to the Santa Clara Country District Attorney's Office, the six individuals defrauded both the program and the State of California by keeping the matching funds for themselves and subsequently falsifying tax returns.
The alleged scheme took place over the course of three years, according to a press release announcing the charges. In the indictment, it's said that Siu Kei (Alex) Kwan spearheaded the scam, with him and five defendants pretending to make donations to the American Chinese International Cultural Exchange (ACICE) or Hop4Kids.
"In fact, they were given the donations back and Kwan—the CEO of Hop4Kids and accountant for ACICE—kept Apple’s matching funds. Meanwhile, all the donators wrote off their 'charitable donations' on their tax returns," the Attorney's Office says.
According to the indictment, those involved in the alleged fraud made off with around $152,000 in illicit funds and over-reported in the neighborhood of $100,000 in charitable contributions as tax deductions. They allegedly accomplished this by making donations through a third-party platform called Benefity, and once Apple matched it to the tune of 100% and sometimes even 200%, Kwan would reimburse the employees while keeping the matching funds.
"This case underscores our unwavering commitment to rigorously prosecuting individuals who defraud the tech community and misuse vital charitable programs and state resources. 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," District Attorney Jeff Rosen said in a statement.
The defendants are being charged with multiple felonies, including grand theft, conspiracy to commit felony grand theft, perjury, and tax fraud. Due to the "substantial" amount of money they're accused of stealing, they also face charges under the aggravated white-collar crime enhancement
