Apple's charity program: How 50 employees, including Indians, misused it

In December 2024, the United States charged six former employees of Apple Inc. for defrauding the company by exploiting its charity programme. The fraud resulted in the misappropriation of $152,000, according to the Santa Clara County District Attorney's Office.

 

The accused face multiple felony charges, including grand theft, conspiracy to commit grand theft, perjury, and tax fraud, the DA said.

 

What is the Apple Matching Gifts Program?

 

The Apple Matching Gifts Programme encourages charitable giving by matching employees’ donations or volunteer hours with equivalent contributions from Apple. Full-time and part-time employees can participate, with the programme supporting various causes, including education, healthcare, and disaster relief.

 

 

However, the programme excludes interns, flexible workforce employees, independent contractors, consultants, and temporary agency workers.

 

What is counted as eligible donations?

 

1. Monetary donations:

Must come from personal funds.

Accepted methods include cash, personal cheque, credit card, PayPal, or Apple stock.

Donations must be made to qualified organisations or causes listed on the Employee Giving portal or vetted and approved.

Must be paid in full, not pledged.

 

2. Volunteer time:

Apple matches $25 per hour volunteered.

Activities must be completed within the past 12 months.

 

Non-eligible contributions:

Donations with political or religious purposes.

Membership fees, dues, or subscriptions for which benefits are received.

Real estate, personal property (other than Apple stock), or bequests.

Contributions made as tuition, insurance premiums, or cumulative donations reported as a single contribution.

 

International donations

Available through the "International Giving" option.

A minimum threshold of $250 per charity is required before distribution.

Distribution timelines may be longer for international charities.

 

Here's how Apple employees can participate:

 

1. Create an account: Log in to the Employee Giving portal using your Apple email.

2. Make a donation: Select "Make a Donation" or "Explore Causes" to donate directly.

3. Request a match:

For monetary donations: Upload receipts and submit a match request.

For volunteer hours: Submit hours through the portal.

4. Check status: View donation and match status under "My Dashboard."

 

Important terms to prevent misuse

1. Donations must comply with the USA Patriot Act.

2. Employees or organisations cannot use Apple’s name for promotion or solicit matching funds improperly.

3. Organisations receiving funds must meet non-discrimination criteria.

4. Any misuse or misrepresentation could lead to disciplinary action, including termination.

 

How do employees gain from this programme?

 

Employees benefit from the Apple Matching Gifts Programme by amplifying the impact of their charitable contributions. For every eligible monetary donation or hour of volunteer work, Apple matches their contribution, effectively doubling their support for the causes they care about. This not only increases the value of their philanthropic efforts but also fosters a deeper sense of engagement and fulfilment in supporting meaningful initiatives.

 

How did the fraud by Apply employees unfold?

 

Between July 2018 and April 2021, the defendants reportedly exploited Apple’s Matching Gifts Programme by claiming to donate to organisations like the American Chinese International Cultural Exchange (ACICE) and Hop4Kids. According to the DA’s Office, the donations were refunded to the employees, while Siu Kei (Alex) Kwan, CEO of Hop4Kids and an accountant for ACICE, retained Apple’s matching funds.

 

The fraud also extended to tax returns, where the defendants claimed deductions for these fictitious donations, the DA added.

 

The accused are alleged to have:

 

Falsified donations: Claiming charitable contributions that were never made.  

Colluded with organisations: Receiving kickbacks from matched funds.  

Inflated donation amounts: Misrepresenting sums to secure larger matches.

 

The six individuals charged are:

 

Siu Kei (Alex) Kwan, 37, of Castro Valley  

Yathei (Hayson) Yuen, 34, of San Jose  

Yat C (Sunny) Ng, 35, of Milpitas  

Wentao (Victor) Li, 38, of Hayward  

Lichao Ni, 39, of Sunnyvale  

Zheng Chang, 31, of Union City  

 

Kwan is alleged to be the ringleader, according to the DA’s Office.

 

“We commend Apple for coming forward and actively collaborating with our office,” said District Attorney Jeff Rosen.

 

Telugu connection

 

Reports suggest Apple terminated about 50 employees, many of whom are reportedly of Indian origin, for their involvement in similar fraudulent activities. Media sources allege some of the terminated employees were associated with Telugu charity organisations in the United States, which were implicated in misusing Apple’s programme.

 

The Telugu Association of North America (TANA) has also come under scrutiny, with the Federal Bureau of Investigation (FBI), Internal Revenue Service (IRS), and Department of Justice (DOJ) reportedly investigating the organisation. Allegations include falsified donations funnelling matched funds back to employees.

 

A subpoena issued to TANA by the US District Court in December requires the organisation to provide donation records, financial transactions, and other documents from 2019 to 2024.

 

What lies ahead for Indians who reportedly lost their jobs in the US?

 

According to Ajay Jain Bhutoria, a member of the President's Advisory Commission on Asian Americans, Native Hawaiians, and Pacific Islanders, H-1B visa workers have a 60-day grace period to leave the US, change their immigration status, or have another employer file an H-1B petition on their behalf. Failure to do so results in a violation of their visa terms.