Apple has fired almost fifty employees and charged six with fraud following an investigation into its Matching Grant program. The program, launched by CEO Tim Cook in 2018, was designed to encourage charitable giving by matching employee donations but was exploited in a fraud scheme, resulting in losses of $152,000 over three years.
Matching Grant Program Exploited
Apple's Matching Grant program doubles the impact of employee donations. For every dollar an employee donates to a charity, Apple contributes two dollars, with an annual limit of $10,000 per employee. This generous system aimed to boost charitable giving and enhance the company's positive image.
However, some employees colluded with certain non-profit organizations, including those reportedly associated with the Indian community, to falsify donations. The scheme involved:
- Employees donating to specific non-profits.
- Apple matching these donations at a two-to-one ratio.
- Non-profits allegedly returning the original donation amount to the employees, allowing them to pocket Apple's matching funds.
Consequences of the Fraud
This scheme not only violated company policies but also potentially breached US tax laws, as the false claims made by the employees could constitute tax fraud. Apple was effectively conned into donating money to these charities while those involved allegedly pocketed the additional funds that were meant to go to charity.
The total amount of the fraud over the past three years has been estimated at $152,000. In addition to the financial loss, this incident has also raised concerns about potential tax evasion, as the scheme might have involved donations from non-existent employees.
Apple's Response
Apple has acted decisively by firing around 50 employees involved in the fraudulent activity. Six of these employees in the Bay Area are now facing criminal charges for fraud and related offenses. The company is reportedly cooperating with authorities to address the issue.
We will continue to update this story as more information becomes available.
Source: indiatoday
