Apple Fires 185 Employees Including Several Indians For Salary Fraud Linked To Charity Program: Report

The reported scheme centres around Apple’s Matching Grants program is a corporate social responsibility initiative which is made to enhance employees' charitable contributions

Apple has reportedly terminated 185 employees at its headquarters in Cupertino, California after discovering that they engaged in a monetary fraud scheme to inflate their compensation. Six of the dismissed employees have been identified by authorities in the Bay Area, with warrants issued for their arrest. While none of these six individuals is Indian, another report suggests that many of the fired employees are of Indian origin and were allegedly misusing certain Telugu charity organisations in the US to carry out the fraud.

Apple has fired several employees from its Bay Area offices for misusing its Matching Grants program, reported NBC, citing the Los Angeles district attorney’s office. Apple has yet to release an official statement on the issue.

ABP Live was unable to independently verify the details.

What Is Apple’s Matching Grants Program

The reported scheme centres around Apple’s Matching Grants program, which is a corporate social responsibility initiative which is made to enhance employees' charitable contributions by matching their donations to nonprofit organisations. Allegations indicate that some employees, in collaboration with certain nonprofit organisations — including those reportedly associated with the Indian community — falsely made donations to take advantage of the program.

According to these claims, employees made donations to nonprofits, which were then matched by Apple. However, the nonprofits allegedly redirected the original donations back to the employees, enabling them to keep Apple's matching contributions. If true, this would not only violate corporate policies but also infringe upon US tax laws, as the employees' fraudulent claims could constitute tax fraud.

The Santa Clara County district attorney’s office reports that six individuals defrauded Apple of around $152,000 over three years by falsely claiming to have donated to two nonprofits — the American Chinese International Cultural Exchange (ACICE) and Hop4Kids.

According to the district attorney’s office, one of the employees, identified as the ringleader, served as both the CEO of Hop4Kids and the accountant for ACICE. The scheme allegedly involved employees pretending to make donations, which were later returned to them. The employee then kept Apple’s matching contributions and also claimed these fraudulent donations on the defendants' tax returns, defrauding the state of California in the process.

A separate report from Great Andhra states that a total of 185 Apple employees were terminated, though current authorities have only released details of six individuals who have been charged with various crimes. This report also highlights that many of the fired employees are of Indian origin.