On April 29th, 2023, Dhirendra Prasad, a former employee of Apple, was sentenced to three years in federal prison for his involvement in a long-running fraudulent scheme that netted him more than $17 million over eight years. Prasad, who worked in Apple’s Global Service Supply Chain unit from 2008 to 2018, was found guilty of conspiring to defraud the United States and fraud. He engineered “sham invoices” for one of his co-conspirators to take unjustified tax deductions worth over $1.8 million.
The fraudulent scheme began as early as 2011 when Prasad, along with two co-conspirators, double-billed Apple for parts it already owned or had purchased. The trio’s actions were a betrayal of trust and an abuse of power, according to federal prosecutors and the Internal Revenue Service. Prasad’s sentence includes forfeiture of $5.5 million in assets and payment of $27.3 million in restitution and a money judgment.
Restitution includes $17.4 million to Apple and $1.9 million to the IRS. The case serves as a reminder that corporate fraud and abuse of power will not go unpunished, and those who engage in such actions will face the full consequences of the law.
The case also highlights the importance of transparency and accountability in corporate governance. Companies must implement strict internal controls to detect and prevent fraud and abuse of power. Regular audits and oversight can also help to ensure that employees are following proper protocols and adhering to ethical standards.
Moreover, companies must ensure that their employees are aware of the consequences of fraudulent behavior. This includes training on ethical conduct, proper documentation, and reporting requirements. Companies must also establish clear lines of reporting for employees to raise concerns about fraudulent behavior without fear of retaliation.
