news services
updated 8/17/2010 10:30:07 AM ET 2010-08-17T14:30:07

An Apple manager has pleaded not guilty to charges he took $1 million in kickbacks in an alleged scheme involving Asian suppliers of iPhone and iPod accessories.

Paul Shim Devine, 37, of Sunnyvale, Calif., entered the plea Monday in U.S. District Court in San Jose.

Authorities say Devine, a global supply manager for Apple, was arrested on Friday on charges of wire fraud, wire fraud conspiracy and money laundering.

Devine is accused of accepting more than $1 million in exchange for providing confidential information to Apple suppliers in Asia. The suppliers allegedly used the information to negotiate favorable contracts with Apple.

Authorities say one of those suppliers is Singapore resident Andrew Ang. Ang, whose whereabouts are unknown, also is named in the federal indictment.

Apple reportedly found out about the alleged scheme in reviewing the cache of Devine's work e-mails, according to reports.

Devine made an annual salary of $614,000 and $51,076 in bonuses, along with 4,500 Apple stock options and 900 shares of restricted stock over a five-year span, according to legal documents filed by Apple, Bloomberg reported.

Device could face a 20-year prison sentence on each of the three counts he is charged with. He is being held by the U.S. Marshals Service. A detention hearing is scheduled Wednesday.

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