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185 Apple employees including Indians terminated for salary fraud involving charity matching program

Some employees were exploiting the company's specific program aimed to enhance employees’ charitable donations by matching their contributions to nonprofit organizations.

Written By: Om Gupta New Delhi Published : Jan 07, 2025 20:16 IST, Updated : Jan 07, 2025 20:16 IST
Apple fraud
Image Source : FILE Apple fraud

Apple has reportedly terminated 185 employees at its Cupertino headquarters following allegations of monetary fraud aimed at increasing their compensation. Authorities in the Bay Area have issued warrants for six of the fired employees. While these six individuals are not identified as Indian, reports indicate that a significant number of the terminated employees may be Indian nationals, who allegedly misused certain Telugu charity organizations in the U.S. to commit fraud.

According to NBC and the district attorney’s office in Los Angeles, the terminations are linked to the misuse of Apple’s Matching Grants program, which is designed to enhance employees’ charitable donations by matching their contributions to nonprofit organizations. The allegations suggest that some employees, in collaboration with specific nonprofits — some of which are reportedly affiliated with the Indian community — falsified donations to exploit this program.

Reports claim that employees made donations to nonprofits that were subsequently funneled back to them, allowing them to benefit from Apple’s matching contributions. If true, this would constitute a violation of corporate policies and could potentially breach U.S. tax laws, as it may involve tax fraud through false claims.

The Santa Clara County district attorney’s office stated that six individuals defrauded Apple of approximately USD 152,000 over a three-year period by inaccurately reporting donations to two nonprofit organizations: the American Chinese International Cultural Exchange (ACICE) and Hop4Kids. Those charged include Siu Kei (Alex) Kwan, Yathei (Hayson) Yuen, Yat C (Sunny) Ng, Wentao (Victor) Li, Lichao Ni, and Zheng Chang. 

Kwan, identified as the ringleader, served as the CEO of Hop4Kids and the accountant for ACICE. The scheme reportedly involved employees falsely claiming to make donations that were later refunded to them, while Kwan retained Apple’s matching contributions and reported fictitious donations on tax returns, thus defrauding California's tax authorities.

A separate report from Great Andhra confirmed that a total of 185 Apple employees were dismissed, although only six individuals have been publicly charged with crimes. The report also indicates that the allegations concerning the misuse of Apple’s Matching Grants program involve several Indian employees.

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