Apple has fired about 50 employees from its Cupertino headquarters after allegedly uncovering a sophisticated scheme involving the abuse of its matching grant program to inflate compensation. While authorities in the US have named six individuals in connection with the fraud and issued warrants against them, reports suggest that a large number of those arrested are Indian employees who were allegedly involved in the scheme. As part, Telugus were exploiting charity organizations in America. Here’s a brief summary of the whole story in 5 points.

-Fraudulent abuse of Apple’s matching grant program

Internal sources confirmed this India Today Tech Apple fired about 50 employees from its Cupertino headquarters following allegations of fraudulent misuse of the company’s matching grant program. This corporate social responsibility (CSR) initiative is designed to increase employee donations by matching them to non-profit organizations. However, some employees allegedly colluded with nonprofits to take advantage of the program and embezzle donations, ultimately pocketing Apple’s matching contributions. Authorities in the US have identified 6 individuals who defrauded Apple of approximately $152,000 over 3 years.

-How the scheme works

The fraud at Apple involved employees donating money to nonprofits, which Apple matched through the program. The nonprofits reportedly returned the original donations to employees, enabling them to retain Apple’s matching funds. Additionally, executives at the nonprofits allegedly wrote off these fraudulent donations on tax returns, potentially violating U.S. tax laws. This scheme not only violated Apple’s corporate policies but also defrauded the state of California

-Nominated individuals and their alleged role in the fraud

The Santa Clara County District Attorney’s Office has charged six individuals with participating in the scheme: Siu Kei (Alex) Kwan, Yathei (Hesson) Yuen, Yat Si (Sunny) Ng, Wentao (Victor) Li, Lichao Ni and Zheng. Chang. Described as the ringleader, Kwan allegedly played dual roles as CEO of Hop4Kids, the non-profit organization involved in the fraud, and accountant for the American Chinese International Cultural Exchange (ACICE). These nonprofits allegedly promoted false donation claims, retained Apple’s matching funds, and defrauded state officials.

-Participation of Indian employees and Telugu donors

A separate report stated that many of the fired employees were Indian nationals who had allegedly misused Telugu charity organizations in the US to perpetrate fraud. These non-profits, allegedly linked to the Telugu community, were allegedly part of a scheme to falsify donation records and return the money to employees. Notably, none of the six accused are Indians.

-Apple remains silent; wider implications

Apple has not released any official statement regarding the termination or the allegations. The revelations have triggered discussions about the potential for abuse in CSR programs and the need for tighter monitoring. This type of fraud undermines the integrity of charitable initiatives and raises serious legal and ethical concerns. While the case mainly focuses on the 50 laid-off employees now, there were earlier reports claiming that around 185 employees were fired.