Foxconn managers sold iPhones made with defective components

$ 43 million fraud by Foxconn operators selling iPhone made with defective components

Reportedly, Apple is investigating a major fraud by Foxconn operators who have sold iPhones made with unsuitable components.

It is said that thanks to the scam, the managers have cashed around NT $ 1.3 billion (US $ 43 million) over a three-year period.

Taiwan News reports:

Taiwanese electronics producer Foxconn said Wednesday (December 18) that an investigation has been launched into alleged fraud in which employees sold iPhones with defective components.

A Taiwanese businessman allegedly worked with a group of executives from Foxconn’s Zhengzhou facility to obtain and assemble defective parts of the iPhone, which are then sold as iPhones manufactured and manufactured on the Chinese manufacturing base.

Defective components would have been destroyed according to normal procedures. The businessman and his group have made thanks to these sales, presumably cashing NT $ 1.3 billion (US $ 43 million) over the past three years.

The details are inaccurate, but the local reports suggest that a management team responsible for the destruction of the defective parts instead organized to sell them to these criminals who assembled them in functioning iPhones, later sold to unsuspecting buyers.

A local report indicates that the fraud was discovered and reported to Apple , which initiated a formal investigation. An email suggests that the survey is managed by Apple’s Business Assurance & Audit (BA&A) team that reports directly to the company’s board of directors. An informant seems to have sent an email to Tim Cook to report the fraud.

Apparently Foxconn has not yet commented, but it is said that former president Terry Guo said that in a society with over one million employees it would not be surprising that ” unreasonable things ” happened involving a small number of them.

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