Former Apple employees accused of defrauding tech giant in charity scam
Prosecutors in Santa Clara County have charged six former Apple employees for allegedly exploiting the tech giant's gift-matching program for charitable donations.
According to the District Attorney's Office, the workers were charged with multiple felonies, including grand theft, conspiracy to commit felony grand theft, perjury and tax fraud in connection with the scheme, which took place between 2018 and 2021. The employees also face an aggravated white-collar crime enhancement due to the sums involved.
The suspects have been identified as 37-year-old Siu Kei (Alex) Kwan of Castro Valley, 34-year-old Yathei (Hayson) Yuen of San Jose, 35-year-old Yat C (Sunny) Ng of Milpitas, 38-year-old Wentao (Victor) Li of Hayward, 39-year-old Lichao Ni of Sunnyvale, and 31-year-old Zheng Chang of Union City.
"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 a statement. "We commend Apple for coming forward and actively collaborating with our Office to uncover this elaborate fraud."
According to prosecutors, Kwan was the alleged ringleader of the operation, directing the other five suspects to donate to two charities: the "American Chinese International Cultural Exchange (ACICE)" and "Hop4Kids." Kwan was the CEO of Hop4Kids and the accountant for ACICE.
Prosecutors said the employees would make donations through a third-party platform called Benevity. Apple would provide a 100% or 200% match and Benevity would disperse the funds to the charities.
Kwan allegedly reimbursed the employees and kept the matching funds for himself. He also allegedly prepared fraudulent tax returns.
The employees are also accused of falsely claiming the donations as tax deductions.
Prosecutors said the suspects extracted about $152,000 from Apple's gift-matching program and overreported around $100,000 in charitable contributions as tax deductions in their returns.
According to Rosen's office, arrest warrants have been issued for all six suspects. Arraignment dates have not been set.
If convicted, the suspects face possible jail time and could be forced to pay restitution, fines and fees.
