Apple Layoffs: How Internal Audits Led to the Discovery of Fraud

Apple layoffs are an unusual thing. However, Cupertino-based tech giant Apple has laid off over 185 employees from its headquarters. 185 employees is a huge number. Sound’s weird, right! Well, this termination is a result of a monetary fraud scandal within the company. These 185 employees were involved. Apple’s corporate social responsibility program was being hampered and exploited by these employees. Apple has fired 185 Indians over donation fraud. Apple needs to be more aware of internal controls and oversight within Apple’s charitable programs as this fraud was happening from the last 3 years which came into notice now. Apple is yet to release an official statement on the terminations or the ongoing investigation.

Apple Layoffs: Plan Execution

Apple’s corporate social responsibility program was being hampered and exploited by these employees. A program is followed by Apple where the company matches employee donations to nonprofits and doubles the amount the nonprofits receive. These non profits include the American Chinese International Cultural Exchange (ACICE), Telugu charity organisations and Hop4Kids. Under the Matching Grants Program, Apple matches donations made by employees to eligible nonprofits. For every dollar an employee donates, Apple contributes an equivalent amount, effectively doubling the donation. Some employees at Apple were caught  working with nonprofits in a fraudulent scheme. They would donate money from the company and the nonprofits would give the employees their donations back. The matching amount was kept from Apple. Therefore, the employees made financial profits along with the nonprofits which managed to get some funds. There has been an arrest of 6 employees in this fraudulent scam. A clear case of creating fake donation records.

Apple Layoffs: Majorly Indians Fired 

Six people have been accused and taken into custody. They cheated Apple with $152,000 over the course of 3 years. Charges levied upon them are of making up donations and taking advantage, false transactions for tax write-offs. The chargers are against the US tax rules and corporation regulations. It’s like a robbery that continued for 3 long years without coming to anyone’s notice. According to the media, many of the 185 employees who have been fired from Apple were Indians. They misused Telugu charity organisations in the United States for their monetary and personal benefits. According to the reports many fired employees reportedly collaborated with nonprofit organisations linked to the Indian community as well.

Apple Layoffs: How did they discover the fraud?

Apple employees were working with nonprofits. This includes links to the Indian community, to create donation records that were fake. The employees would donate money to these Indian based nonprofits and get the original contributions back. Apple conducted audits for the same.The investigation initiated by the Santa Clara County District Attorney's Office. When Apple received the reports the unusual donation patterns were alarming and there were discrepancies in the Matching Grants Program. This alarming situation led to further investigation. Finally, the district attorney's office charged 6 employees with fraud. The employees managed to manipulate donations and extract $152,000 from Apple over three years.