Legal Issues

Former Apple Employee Admits to Defrauding Tech Giant of $17 Million

Former Apple Employee Admits to Defrauding Tech Giant of $17 Million

Following an investigation headed by the IRS Criminal Division, a former Apple employee has admitted to defrauding the Silicon Valley tech company of over $17 million.

Yesterday, November 1, Dhirendra Prasad pleaded guilty to conspiracy to commit fraud and conspiracy to defraud the United States in federal court. The update was announced by Special Agent in Charge Mark H. Pearson.

According to an official release from the IRS, Prasad explained that his tenure with Apple ran from 2008 to 2018, during which time he primarily employed as a buyer in Apple's Global Service Supply Chain. Among Prasad's duties was the purchase of parts and services for Apple from third-party vendors.

As long ago as 2011, Prasad admitted he started "taking kickbacks, inflating invoices, stealing parts, and causing Apple to pay for items and services never received." 

His scam continued through 2018, ultimately costing Apple upwards of $17 million.

Robert Gary Hansen and Don M. Baker -- both California residents -- served as Prasad's co-conspirators throughout his scheme. In one instance, the IRS shared, Prasad shipped motherboards from Apple's warehouse to Baker's company, CTrends. Baker then had the motherboards harvested for parts, while Prasad arranged for Apple to issue purchase orders for the components. Baker shipped the parts back to Apple, and CTrends ultimately invoiced Apple for its own motherboards.

Similar situations occurred for years.

In addition to pleading guilty to fraud, Prasad acknowledged that he committed tax evasion resulting in a $1.8 million loss to the IRS. 

United States District Judge Beth L. Freeman scheduled Prasad's sentencing hearing for March 14, 2023. He is currently out of custody pending that court date.

Apple Computers, founded by Steve Wozniack and the late Steve Jobs on April 1, 1976, has become famous for its wide array of sleek, user-friendly tech products.

The Cupertino-based business was put on the map with Macintosh computers and is today most well-known for products like iPhones, MacBook laptop computers, and AirPod bluetooth earphones.

What do you think about Prasad's fraud scheme against Apple?

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Rebekah Barton

Rebekah Barton

Rebekah's search engine optimization career began completely by accident as a college student. Over the course of her career so far, she has "grown up" with the SEO industry, from writing content while juggling classes to managing her own teams of writers and overseeing SEO strategy in subsequent roles. She is excited to bring her passion for high-quality content to CountingWorks, Inc.

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