Ex-Apple staff Dhirendra Prasad admits defrauding company of more than $17 mn

Former Apple worker Dhirendra Prasad, 52, has pleaded guilty to committing fraud of more than $17 million over seven years in Apple, Inc., US federal prosecutors said on Wednesday. According to a statement from the California Department of Justice, Prasad has submitted a written plea agreement, where he has given details about the schemes he carried out while he worked as a buyer for Apple's Global Service Supply chain. Prasad worked at Apple’s Global Service Supply Chain department between 2008 and 2018, where, as per his confession, he misused his position, and was able to take kickbacks, inflate invoices, and steal Apple components.

Prasad admitted that he was involved in fraud and “taking kickbacks, inflating invoices, stealing parts, and causing Apple to pay for items and services never received," prosecutors said in a statement. Two more company owners, Robert Gary Hansen and Don M. Baker, who were also involved with Apple, were found guilty, and have been booked in separate federal cases.

The Department of Justice has said that Prasad used to ship motherboards from Apple to Baker's company, CTrendsn in 2013. Following this, Baker would then extract the components of the motherboards. On the other hand, Prasad forced Apple to purchase the same components. In short, Prasad made arrangements where the computer giant was forced to purchase its own parts. Prasad and Baker would split the profit from those fraudulent purchases.

In a similar manner, Prasad sold Apple’s components to Hansen's company, Quality Electronics Distributors, Inc., after which the latter would repackage these components and charge Apple for them. The profit from these purchase orders was split between the two.

As per news reports, the US government has already seized $5 million worth of assets from Prasad. If he is found guilty, he will face up to 25 years in prison.  
Prasad pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud in violation of 18 sections, which carries a maximum sentence of 20 years in prison.  
Prasad will face a sentencing hearing on March 14, 2023, and till then, he will remain out of custody.