Apple exec stashed $150,000 in shoe boxes
- 25 August, 2010 04:05
Federal agents found more than US$150,000 in cash when they searched the house of Apple manager Paul Devine earlier this month, prosecutors said in court Monday.
"He had over $150,000 stored in shoe boxes," Department of Justice Attorney Michelle Kane said, as she argued with a defense lawyer over the possible terms of Devine's release. Devine had a further $20,000 worth of foreign currency in his possession, she said, arguing that it was possible that the Apple executive might have other hidden sources of cash.
"We have identified a significant number of accounts overseas and a significant amount of money," Kane said.
Devine was charged two weeks ago with taking kickbacks from Apple suppliers.
The Apple global supply manager must transfer the unknown amount of cash held in foreign bank accounts into the U.S. and post it plus $600,000 in bail before he can be released, said U.S. Magistrate Judge Howard Lloyd of the U.S. District Court for the Northern District of California.
Devine would pose too much of a flight risk to be released before the funds from his foreign accounts had been moved into the U.S., the judge said.
Prosecutors say that Devine shared confidential information on Apple products such as the iPod and iPhone in exchange for cash kickbacks. He allegedly provided suppliers with projected sales figures, data on how much it cost Apple to produce the products, and pricing bids from supply chain competitors.
Devine pleaded not guilty to the charges last week. He is also facing a civil suit from Apple.
It may take some time for Devine to meet all the conditions of his release. His lawyer said his client might not even be able to move the money into the U.S. because of the complicated logistics of foreign fund transfers.
There are other conditions too.
Devine must allow authorities to inspect two safety deposit boxes he holds. Given that Devine had so much cash stashed away in his house, the Department of Justice wants to ensure that he doesn't have money in the safety deposit boxes as well, Kane said.
Devine and his wife must also surrender passports to the court, the judge said.
On Monday, Devine's mother agreed to post the deed to her Maryland house as bond.