Tech giant Apple sacks 185 Indian employees for donation fraud: Report
By Vinaykumar Patil | First Published Jan 8, 2025, 4:41 PM ISTApple reportedly terminated 185 employees, including many Indians, for misusing its Matching Grants program by falsifying donations to nonprofits, pocketing matching funds, and claiming tax deductions. Six individuals were charged, and organizations like TANA are under FBI scrutiny for alleged fraud. Investigation continues.
In a major revelation, tech giant Apple has reportedly terminated around 185 employees, including several of Indian origin, over allegations of financial fraud involving the company's Matching Grants program. The employees were allegedly found to have manipulated the program to boost their financial gains, raising serious concerns about ethical practices.
The allegations suggest that some employees collaborated with nonprofit organizations to falsify donations under Apple’s Matching Grants program. This corporate social responsibility initiative matches employee contributions to approved charities. However, in this case, employees reportedly arranged for the nonprofits to return the donated money, while they retained Apple’s matching contributions.
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Authorities claim this scheme not only violated corporate policies but may also constitute tax fraud, as false donations were reportedly used to claim tax deductions.
The Santa Clara County District Attorney’s Office has charged six individuals in connection with the scheme. These include:
- Siu Kei (Alex) Kwan, 37, of Castro Valley.
- Yathei (Hayson) Yuen, 34, of San Jose.
- Yat C (Sunny) Ng, 35, of Milpitas.
- Wentao (Victor) Li, 38, of Hayward.
- Lichao Ni, 39, of Sunnyvale.
- Zheng Chang, 31, of Union City.
According to authorities, Kwan played a central role as both the CEO of Hop4Kids and the accountant for the American Chinese International Cultural Exchange (ACICE), the two nonprofits at the center of the fraud allegations, reported TOI.
While none of the six individuals charged are of Indian origin, reports suggest that a significant number of the terminated employees are Indians. Some of these employees allegedly misused Telugu charitable organizations in the U.S. to carry out similar fraudulent activities. Reports also claim that nonprofit groups like the Telugu Association of North America (TANA) are under scrutiny for alleged misuse of matching grants from various corporations.
The FBI, IRS, and Department of Justice are reportedly conducting a joint investigation into the misuse of corporate social responsibility funds. A subpoena issued to TANA by a U.S. district court demands detailed records of donations, expenses, financial policies, and internal controls from 2019 to 2024.
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The subpoena also requests comprehensive details about TANA’s operations, including board meetings, financial reports, and all transactions related to matching program funds.
Apple has not yet released an official statement regarding the allegations or the termination of employees. However, the company’s Matching Grants program is now under intense scrutiny. NBC reported that the fraud cost Apple approximately $152,000 over a three-year period.
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