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In this article, we’ll dive into the massive fraud scheme orchestrated by a former Apple employee, leading to a 3-year prison sentence and over $30 million in financial penalties.
We’ll explore how this long-running conspiracy was carried out and the consequences for those involved.
Key Takeaways:
- Dhirenda Prasad, 55, sentenced to 3 years in prison and over $30 million in penalties
- Prasad conspired with Robert Hansen and Don Baker, who ran companies supplying Apple
- Fraud involved stealing parts, altering invoices, double billing, and charging for undelivered parts
- Prasad evaded taxes on his share of the $17 million fraud proceeds
The Mastermind Behind the Scheme
Dhirenda Prasad, a 55-year-old former Apple employee, found himself at the center of a years-long fraud scheme that ultimately led to his recent sentencing.
Prasad had been working as a buyer in Apple’s supply chain, responsible for purchasing parts required for warranty repairs.
His position within the company granted him significant autonomy in making decisions, which he exploited for personal gain.
Over the course of several years, Prasad abused the trust placed in him by Apple and engaged in fraudulent activities that cost the company millions of dollars.
Partners in Crime: Robert Hansen and Don Baker
Prasad did not act alone in this elaborate scheme. He conspired with two business owners, Robert Hansen and Don Baker, who operated companies that sold products to Apple.
Together, the trio admitted to their roles in the fraudulent schemes, which included stealing parts, inflating invoices, and overcharging Apple for components.
The collaboration between Prasad and his partners enabled them to carry out the fraud undetected for an extended period.
Details of the Fraudulent Activities
From 2011 through 2018, Prasad and his accomplices executed several fraudulent tactics to defraud Apple.
In one instance in 2013, Prasad sent motherboards that Apple already owned to Baker, who then dismantled them and sold them back as individual parts.
This effectively forced Apple to pay for its own property, as the company was billed for the components it already possessed.
In 2016, a similar incident occurred when Prasad sent more of Apple’s parts to Hansen.
Rather than dismantling them, Hansen simply repackaged the components and sent them back as if they were a new order, once again causing Apple to pay for its own property.
The fraud scheme also involved double-billing Apple for components it had already received and charging the company for parts it never actually purchased.
Evading Taxes and Money Laundering Charges
Prasad confessed to not paying taxes on the share of the $17 million earned from the fraud schemes, besides cheating Apple.
As a result, he faced charges of tax evasion and money laundering.
But during his sentencing, the charges against him were dropped because he admitted guilt to two counts of conspiring to commit fraud and defraud the United States in November.
Consequences and Penalties for Prasad
After a complete examination and lawful actions, Prasad has been given a punishment of three years in jail and instructed to pay a total of $19 million to Apple and the Internal Revenue Service for compensation.
The court also ordered Prasad to forfeit approximately $5.5 million in assets that the government seized when he was arrested.
Additionally, he is required to pay another $8 million in forfeitures, alongside $17.4 million in restitution to Apple and $1.8 million to the IRS, bringing the total penalties to just under $33 million.
After completing his prison term, Prasad will face three years of supervised release.
The sentencing of Dhirenda Prasad sends a strong message to those who may consider engaging in fraudulent activities.
It highlights the importance of adhering to ethical business practices and demonstrates the severe consequences that can result from abusing positions of trust.
Prasad’s misconduct at work led to him losing his freedom and having to pay millions of dollars in fines and restitution.
This situation highlights the significance of upholding honesty and ethical standards in the workplace, and the potential consequences that can arise when someone decides to engage in fraudulent behavior.
Companies and individuals alike must remain vigilant against such schemes, ensuring that they have robust systems in place to detect and prevent fraud.
Moreover, this case underscores the need for fostering a culture of accountability and transparency within organizations, ultimately protecting both their reputation and financial well-being.
