Former Apple Employee Allegedly Embezzled IDR 2.4 Billion Through Donation Fraud Scheme

Illustration of Apple's office in Cuppertino (photo: x @nouvearchects)

JAKARTA Six former Apple employees are suspected of being involved in a donation fraud scheme that cost the company IDR 2.4 billion over three years. The scheme involves manipulation of Apple's Matching Gifts program, tax fraud, and the use of charitable organizations as a means of transferring funds.

According to a report from CBS based on the release of the Santa Clara Prosecutor's Office, the group is led by Siu Kei Kwan, a former CEO of Hop4Kids and an accountant for the American Chinese International Cultural Exchange. With its special access, Kwan is suspected of working with five other Apple employees: Yathei Yuen, Yat C Ng, Wentao Li, Lichao Ni, and Zheng Chang.

They made large donations to the two organizations. Apple, which has a donation matching program of up to 200%, matched the amount. After that, the original donation was returned to the perpetrators, while the matching money from Apple went into Kwan's pocket.

To maximize profits, Kwan also offers tax report manipulation services so that they can still claim tax credit for donations that they have actually taken back.

The Santa Clara Prosecutor's Office has filed charges, including major thefts, conspiracy to commit crimes, false oaths, and tax fraud. The sentences imposed can include imprisonment, compensation payments, and fines.

"This case demonstrates our commitment to taking firm action against anyone who deceives the tech community and abuses critical charitable programs and state resources," said Regional Prosecutor Jeff Rosen in his statement. "We appreciate Apple's proactive move in uncovering this scam and working with our office. We encourage other tech communities to do the same. This is the holiday season; donate it legally to help those in need, not for personal gain."

These allegations are still suspected, and the trial schedule for the theft of Rp. 2.4 billion and the false tax report of Rp. 1.6 billion from 2018 to 2021 has not been determined.

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