Feds: Former Supply Chain Worker Stole $10M From Apple

Two vendors also charged with participating in the scheme, federal court papers show

Federal prosecutors have charged a former employee in Apple’s global service supply chain department with defrauding the company out of more than $10 million – taking kickbacks, stealing equipment, and laundering money, an unsealed federal criminal case alleges.

Federal prosecutors say Dhirendra Prasad, 42, a 10-year veteran and former buyer in the global supply chain department, exploited his position to defraud the company in several schemes, including stealing parts and causing the company to pay for items and services it never received.

The federal government has seized five real estate properties and financial accounts worth about $5 million from Prasad, the U.S. Attorney’s office for the Northern District of California said in a news release. The government is seeking to keep those assets as proceeds of the crime, the office said

According to his LinkedIn profile, Prasad worked at Apple from January 2009 until May 2019. His profile says he’s been working for a “confidential” company in global supplier management.

Two owners of companies that did business with Apple have admitted to conspiring with Prasad to commit fraud and launder money, court papers show. Federal prosecutors have identified the alleged co-conspirators as Gary Hansen and Don M. Baker and they have been charged as well.

The court documents state, “As an Apple buyer, Mr. Prasad received internal orders from Apple, requested quotes for the required parts and services from vendors, reviewed the quotes, negotiated terms, selected vendors, and placed Purchase Orders using Apple’s purchasing system… The government expects that the evidence at trial will establish that Mr. Prasad used his position of trust at Apple to engage in multiple different schemes… including taking kickbacks, stealing parts using false repair orders, and causing Apple to pay for items and services it never received…”

The court filing also accuses Prasad of tax evasion and money laundering.

The Associated Press noted that fraud, money laundering and tax evasion each carry maximum sentences of five to 20 years, but sentencing guidelines and judges’ discretion mean most people convicted of fraud in federal court receive less than the maximum sentence.

Prasad did not did not return a message seeking comment by press time.

Contacted via LinkedIn, former co-worker Husam Kal said he was shocked by the allegations. Kal even gave Prasad a LinkedIn “highly skilled” endorsement for supply chain skills. “Very surprised and astonished by this turn of events,” he wrote to CRN in a message.