US: Apple sacks Indian employees for `charitable donation fraud'; TANA under investigation

US: Several Indian employees are reportedly among those terminated by Apple for allegedly exploiting the company's charitable donation matching program in collaboration with Telugu charity organizations in the US.

In 2018, Apple CEO Tim Cook introduced a donation matching program as part of the company's corporate social responsibility (CSR) initiatives. Under this scheme, for every dollar an employee donates to a charity, Apple matches it with two dollars, up to an annual limit of $10,000 per employee.

Alleged Exploitation of the Program

The program, designed to encourage charitable contributions, was allegedly misused by some employees who collaborated with certain charities. These individuals reportedly fabricated donation records to claim matching funds, which were then redirected back to themselves. Additionally, falsified tax deductions were allegedly included, raising concerns about potential violations of U.S. tax laws.

Termination of Employees

Apple has reportedly terminated approximately 50 employees from its Cupertino headquarters after uncovering the scheme. According to NBC, the district attorney’s office in Los Angeles stated that several employees exploited the Matching Grants Program to inflate their earnings fraudulently.

The Santa Clara County district attorney’s office revealed that six individuals had defrauded Apple’s Matching Gifts Program and the State of California between July 1, 2018, and April 6, 2021, stealing approximately $152,000. Arrest warrants have been issued for the following individuals:

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

Among them, Siu Kei (Alex) Kwan, CEO of Hop4Kids and an accountant for the American Chinese International Cultural Exchange (ACICE), is accused of facilitating the scam through these nonprofits.

Investigation into Telugu Organizations

The Telugu Association of North America (TANA) is reportedly under investigation for potential involvement in the fraudulent scheme, including the misuse of funds matched by Apple’s program.

While Apple has not released an official statement on the matter, the district attorney’s office continues its investigation into the fraudulent activities and the organizations involved.