Governance and risk experts are all over HP and its board for either mishandling the Mark Hurd situation or not doing enough to prevent it in the first place. But HP's internal controls are not the only ones that need tweaking, apparently.
Monday, a former Apple manager pleaded not guilty to federal charges of wire fraud and conspiracy. Paul Shim Devine was arrested last week after officials discovered he received more than $1 million in kickbacks from certain Apple suppliers in Asia in exchange for information that enabled them to beat their competition and win Apple contracts.
According to The Mercury News, companies that paid Devine for favor with Apple include Cresyn, a South Korean earphone and earbud maker; Jin Li Mould, based in Singapore; and a Chinese company, Kaedar. He deposited the funds in several different bank accounts, and reportedly told the suppliers to wire the money in amounts smaller than $10,000 so as not to arouse suspicion from regulators.
In addition to the federal charges, Devine also faces a civil racketeering lawsuit filed by Apple. Although there's no indication how Apple was alerted to the scheme, the story says the company began investigating in April when it found e-mails and other communications between Devine and the suppliers on his company-issued laptop.