In a shocking revelation, approximately 185 employees, predominantly Telugu-speaking, have been dismissed from their positions at Apple, the renowned iPhone manufacturer, in the United States. The reason behind this mass termination is their alleged involvement in a fraudulent grants program. The employees are accused of misusing Apple’s Grant Programme in collusion with certain Telugu associations based in the US.
The modus operandi of the scam was quite intricate. Telugu associations in the US, which regularly solicit donations from Telugu-speaking individuals in the country, approached Telugu employees at Apple for contributions to their non-profit groups. Many employees obliged and made donations. As part of Apple’s corporate social responsibility (CSR) norms, the company matched the donation amount given by its employees to these Telugu non-profit organizations.
On the surface, this transaction appeared to be straightforward. However, subsequent investigations unveiled a different story. It was discovered that this was an elaborate scheme to defraud Apple. The funds donated by Telugu employees to these non-profit entities were funneled back to them after they received matching donations from Apple.
The Investigation and Aftermath
The irregularities were eventually detected by Apple’s Finance department, which promptly reported the matter to the Internal Revenue Service (IRS) in the US. Upon investigation, the IRS found that these Telugu associations manipulated the CSR regulations of Apple to illicitly acquire funds. They had used Telugu employees as part of their network to execute this scam.
Following the revelation, Apple reportedly gave the involved employees an ultimatum: resign due to compromised integrity or face termination. The company’s decision has impacted about 185 employees, ranging from senior manager level to entry-level executives. All these employees were based in the Bay Area office of Apple.
This incident has occurred at a time when Apple has promoted Indian-origin Kevan Parekh as its new Chief Financial Officer (CFO). Parekh assumed the role of Apple’s CFO effective from January 1, 2025.