A former Apple employee has been sentenced to three years in prison and ordered to pay back over $19 million in restitution after stealing around $17 million from the tech giant through mail and wire fraud schemes.
Dhirendra Prasad, 55, who was employed by Apple between 2008 and 2018, was originally charged in March 2022 and later pleaded guilty to conspiring to defraud Apple and related tax crimes back in November last year.
Prasad mostly worked as a buyer in Apple’s global service supply chain, purchasing parts and services from vendors. In his written plea agreement, Prasad admitted that he started siphoning money from his employer around 2011 by accepting kickbacks, stealing parts, inflating invoices, and fraudulently charging Apple for goods that were never delivered. He also admitted to evading tax on the proceeds of his schemes and conspiring with the owners of two vendor companies who have been charged in separate cases.
The United States Department of Justice (DOJ) claims that Prasad exploited his position as a buyer and used insider information regarding Apple’s fraud detection techniques to try and hide his criminal activities. By using his knowledge of Apple’s fraud detection techniques, Prasad was able to avoid detection for some time.
“By virtue of his position at Apple, Prasad was given substantial discretion to make autonomous decisions to benefit his employer,” said the DOJ in a statement published on Wednesday. “Prasad betrayed this trust and abused his power to enrich himself at his employer’s expense – all while accepting hundreds-of-thousands of dollars’ worth of compensation from Apple in the form of salary and bonuses.”
Prasad pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud and one count of conspiracy to defraud the United States. In addition to his three-year prison sentence, Prasad has agreed to pay back $19,270,683 in restitutions — $17,398,104 to Apple and $1,872,579 to the IRS for the tax he owes. He has also been ordered to forfeit over $5.4 million worth of assets that the government has already seized and pay an additional $8.1 million in cash.
The case of Dhirendra Prasad serves as a reminder of the importance of trust and responsibility in the workplace. The betrayal of trust and abuse of power that Prasad committed against Apple was significant, resulting in millions of dollars in losses for the company. The fact that he was able to evade detection for some time shows that even the most advanced fraud detection techniques can be exploited by those who know how to do it.
This case also highlights the importance of consequences for those who commit fraud in the workplace. The fact that Prasad is facing three years in prison and must pay back millions of dollars in restitution is a strong message to others who might be considering similar activities. The punishment for this type of crime is severe, and the cost of getting caught is simply too high. Employers must take measures to prevent fraud in the workplace, including background checks, regular audits, and employee training on fraud detection.
While it’s unclear how long Prasad’s fraudulent activities would have continued if he had not been caught, his scheme serves as a cautionary tale for employers and employees alike. Trust is a fundamental element in any workplace, and the consequences of violating that trust can be severe.
As technology continues to advance, companies must be vigilant in protecting themselves from fraud and other criminal activities. The use of AI and other technological advancements can help in detecting fraud, but they should never be seen as a replacement for human oversight and due diligence.
