The Incredible Story of an Apple Employee Who Managed To Steal $10M From Tim Cook’s Firm.

Dhirendra Prasad's alleged scheme lasted a decade.

The year is 2008. It is not long since the iPhone was launched by Apple. Dhirendra Prasad is then hired by Apple as a buyer in the group's supply chain. This is a department that manages supplies from raw materials to the delivery of the firm's products and services.

Among his various activities, Dhirendra Prasad has to deal with the purchase of spare parts from several companies.

For several years, everyone has been praising Apple for its supply chain management under the direction of Tim Cook. One could therefore legitimately think that Dhirendra Prasad was one of the people who contributed to Apple's success in this area.

In reality, Dhirendra Prasad took advantage of his position within Apple's supply chain to set up a scam with the help of two complicit suppliers. He has just been unmasked by the American Department of Justice.

When he needed to buy parts, Prasad would ask for quotes from suppliers and then choose the one that made the best offer for Apple. However, Prasad would systematically favor his two accomplices in exchange for “services to be rendered”. His two accomplices are said to be Robert Gary Hansen and Don M. Baker, according to the U.S. Department of Justice.

The services to be rendered were different: payment of bribes, theft of parts, payment of items by Apple that the company never received ...

Prasad was finally fired by Apple in December 2018. He would have resulted in a loss of more than 10 million dollars to the firm led by Tim Cook, as explained in the complaint:

“Mr. Prasad used his position of trust at Apple to engage in multiple schemes to defraud Apple, including taking kickbacks, stealing parts using false repair orders, and causing Apple to pay for items and services it never received, resulting in a loss of more than $10,000,000.”

Prasad's alleged scheme has grown more and more over time. In 2017, he reported $1.2 million in income. An amount greater than his actual income, which they obviously could not declare, as it was derived from illicit activities.

According to the American prosecutors in charge of the case, Prasad would have tried to launder this money in different ways:

• By purchasing five properties, most of them in California's Central Valley.

• By placing funds in various investment accounts.

• Placing it in 529 college savings plans.

• And investing it in a retirement fund.

The U.S. government says it seized $5 million in assets.

Prasad's two accomplices were charged last year, and the US attorney's office wants their cases combined with Prasad's:

“Together, the vendors each conspired with Prasad to commit fraud and money laundering.”

Prasad is also charged with conspiracy to commit wire and mail fraud, two counts of conspiracy to launder money, conspiracy to defraud the United States, and tax evasion. Each of the first three counts carries a maximum sentence of 20 years, while the last two carry maximum sentences of five years.

This is an amazing story that should discourage others from doing similar things. Although, with the natural inclination for greed, one can't be sure of that. One also wonders how it took Apple so long to expose Dhirendra Prasad. Perhaps he was too greedy, which caused someone to expose him.

We'll see if the trial will uncover more.