* US prosecutors request that Devine not get bail
* Follow-up court hearing set for Wednesday
* Treasury Dep't special agent says probe is ongoing
(Adds more detail, background, lawyers comment, byline)
By Dan Levine
SAN JOSE, Calif, Aug 16 An Apple Inc (AAPL.O)
global supply manager pleaded not guilty on Monday to charges
of accepting kickbacks from Asian companies, while prosecutors
said he is a flight risk and should not be granted bail.
Paul Devine, in handcuffs and wearing an orange prison
shirt, appeared in federal court in San Jose, California with
Devine, 37, was charged in a federal grand jury indictment
last Wednesday with 23 counts of wire fraud, money laundering,
conspiracy and accepting kickbacks, court documents showed. In
a separate civil lawsuit, Apple accused him of receiving more
than $1 million in payments and bribes over several years from
companies that supplied iPhone and iPod accessories.
In court, a federal prosecutor argued that no bail
conditions could assure Devine's appearance for trial. U.S.
Magistrate Howard Lloyd set another bail hearing for
A lawyer for Devine declined to comment outside of court,
as did a federal prosecutor handling the case.
Arlette Lee, a special agent for the U.S. Treasury
Department, said the investigation is "ongoing."
An employee at Cupertino, California-based Apple since
2005, Devine is accused of using his position at the technology
company to obtain confidential information that he shared with
Apple suppliers to help them negotiate favorable contracts with
The alleged scheme began to unravel this past April, when
Apple launched an internal investigation and found a cache of
emails between Devine and the suppliers, Apple's lawsuit said.
The lawsuit contends that Devine had warned his contacts
not to send messages to his Apple email account, for fear of
detection, but Apple's investigators accessed his personal
Gmail and Hotmail correspondence.
Andrew Ang of Singapore, a former employee at Jin Li Mould,
one of the suppliers named in Apple's lawsuit, was indicted
along with Devine. Ang's whereabouts are unclear.
Apple contends Devine made about $1 million in improper
commissions from Jin Li Mould and split 15 to 20 percent with
Ang. The two men kept an Excel spreadsheet to track their
profits, Apple contends in its lawsuit.
A Jin Li Mould executive did not immediately respond to a
emailed request for comment from Reuters.
(Reporting by Dan Levine and Gabriel Madway; editing by
Martha Graybow, Robert MacMillan and Andre Grenon)