NEW DELHI: Apple has reportedly terminated dozens of employees, the majority of whom are Indian nationals, following the uncovering of a fraudulent scheme designed to exploit the company’s Matching Grants programme.
The scam spanned over three years and exploited Apple’s corporate social responsibility initiative, which matches employees’ charitable donations to eligible non-profit organisations, India Today reported.
The allegations, first reported by the Santa Clara County District Attorney’s Office, suggest that employees falsely claimed to donate funds to specific non-profit organisations, which later returned the original donations to them. The employees then pocketed Apple’s matching contributions.
The arrangement also reportedly included falsified tax deductions, leading to concerns about potential violations of US tax laws.
This fraudulent activity is estimated to have cost the company approximately $152,000, India Today reported while citing the Santa Clara County district attorney’s office.
Authorities have charged six individuals, including the alleged mastermind Kwan, who are believed to have planned and participated in the fraudulent scheme.
Mostly Indians involved in fraud scheme
According to the district attorney’s office, Kwan facilitated the fraudulent activities by arranging for donations to be refunded to the employees while retaining Apple’s matching contributions.
Additionally, Kwan allegedly wrote off the false donations on tax returns, leading to further violations of California tax laws.
A report by Great Andhra highlights that the over hundred terminated employees include a majority of Indian nationals, with several reportedly linked to Telugu charitable organisations in the United States.
The report alleges that these employees collaborated with non-profits to falsify donations, effectively inflating their incomes through Apple’s Matching Grants programme.
Apple has not yet issued an official statement regarding the terminations, and the investigation remains ongoing. The company’s Matching Grants programme is designed to amplify employees’ charitable efforts by matching their donations to qualified organisations dollar for dollar.
However, the misuse of this programme constitutes not only a violation of corporate policies but also potential tax fraud under US law.
