Foxconn Execs Arrested For Accepting Bribes From iPhone Suppliers

by Todd Haselton | January 22, 2014


This isn’t the first time Apple or its partners have made headlines for bribery allegations, but it is the most recent. Today a report from Chinese news outlet Tencent Technology cites another story from China Times that suggests that several Foxconn executives, some current and some former, were recently arrested in China.

The group of employees, including a former senior vice president of Hon Hai and “many other senior” execs were apparently accepting bribes to use certain parts in Apple’s supply chain. The executives were apparently accepting these payments, or rebates as they’re being referred to, and were storing them in overseas bank accounts. Those actions have also resulted in money laundering charges. Two executives named include Liaowan Cheng, the alleged head of the operation, and Deng Zhixian. Both are apparently arguing that their actions were “in accordance with regulations.” Another executive, Chan Chi Chuan, is being held with bail.

AppleInsider said that at least a dozen people related to scheme are in jail, and that the execs have accepted upwards of $3.3 million in bribes.

Todd Haselton

Todd Haselton has been writing professionally since 2006 during his undergraduate days at Lehigh University. He started out as an intern with...