Former Apple Global Supply Manager to Serve Jail Time for Procurement Fraud
It has been a long time coming, but we can finally close the book on Paul Shin Devine, the Apple global supply manager arrested and indicted on 23 fraud, conspiracy, and corruption charges (read our initial coverage of the scandal/crime from 2010 Avoiding the Bad Apples and CPO Strategies for Fraud Prevention). Last week, Devine was sentenced to one year in jail and ordered to pay a $4.5 million fine for his role in a kickback scheme. In 2011, Devine pleaded guilty to the charges, including taking more than $2.3 million in kickbacks in exchange for providing proprietary information on Apple’s products, such as the iPod, iPhone, and headsets, to Apple’s suppliers. In exchange, the suppliers were able to negotiate more favorable contracts with Apple. As a result, Apple has also filed a lawsuit against Devine, seeking additional damages.
From CPO to CEO: John Campi named President & CEO at Safety Quick Lighting & Fans
On Tuesday, December 9, Atlanta-based lighting and ceiling fan manufacturer and distributor, Safety Quick Lighting & Fans (SQL), announced that it has hired former CPO and “friend of the site,” John P. Campi as its new President and Chief Executive Officer. Campi brings 35 years of procurement and supply management experience to his new role. Among his many professional and educational achievements, Campi is the founder and managing partner of Genesis Management, a global supply management and cost management advisory firm. Prior to founding Genesis, Campi served as the Executive Vice President and Chief Procurement Officer at the Chrysler Corporation; Senior Vice President of Procurement at the Home Depot; Senior Vice President and CPO at DuPont; and General Manager of Global Sourcing at General Electric. Campi earned his BS in Business (Accounting) from Indiana University, and his MBA from Case Western Reserve University.
According to a statement released by SQL’s Board of Directors, “John’s extensive work background, especially at GE and Home Depot, should help SQL manage these critical relationships as it enters into the commercialization phase…. John’s experience in supply chain management is expected to be a great benefit in coordinating sales and production as lighting and fan fixtures embedded with our ground breaking technology hit the market.”
We’ve known John for many years and congratulate him on his new role.
Richard Buccarelli, J.P. Morgan Chief Procurement Officer, Departs the Company
According to the Wall Street Journal’s Moneybeat blog, Richard Buccarelli, the Chief Procurement Officer at J.P. Morgan Chase (NYSE: JPM) has left the bank. Buccarelli joined J.P. Morgan in 2009 and drove vendor management programs including supplier rationalization, sourcing and contingent workforce management. From 2006-2009, he was Chief Executive Officer of Precision AeroPower, a manufacturer of critical performance parts for the aerospace, defense, and power generation industries. Prior to that, he was the Senior Vice President Corporate Development and General Counsel for the parent company, Precision Partners, Inc., focusing on mergers and acquisitions. In addition to practicing law in the private sector, Buccarelli was also the Chief Executive Officer of Hanson Properties North America, a $300 million commercial and residential real estate developer, Vice President of Corporate Development with US Industries, Inc. and Assistant General Counsel with Hanson Industries and Kidde, Inc. Mr. Buccarelli served on the board of directors of Travelport, Inc., a leading provider of critical transaction processing solutions to companies operating in the global travel industry. He earned his Bachelor of Arts degree from Rutgers College and holds a Juris Doctor degree from the New York University School of Law. Richard has not announced his next career move.
DC Circuit Court Panel to Review SEC’s Challenge to Latest Conflict Minerals Ruling
Last week, the SEC argued that a panel of the U.S. Court of Appeals for the District of Columbia should reexamine an April 2014 court ruling that a key part of the Conflict Minerals provision of the 2010 Dodd-Frank Act is unconstitutional. In April, we reported that the Court ruled that it was unconstitutional to compel the more than 6,000 publicly-traded companies in the U.S. to publicly declare whether or not their products are “DRC conflict free” (this basically means that companies have to state whether or not their products contain minerals mined in rebel-controlled areas in the Democratic Republic of the Congo or certain neighboring countries).
The ruling at the time was that this was considered “compelled speech”, which is unconstitutional. However, the U.S. Securities and Exchange Commission (SEC) contends that the Court’s earlier decision was based on a narrow interpretation of what is considered compelled speech. In light of a subsequent case that questioned this narrow interpretation (American Meat Institute v. U.S. Department of Agriculture), the SEC is seeking the reversal of the Court’s earlier decision, which could reinstate the public disclosure requirement of the Conflict Minerals reporting law, and impact global supply management, procurement, and legal departments. The panel has requested an expedited process and the National Association of Manufacturers, the U.S. Chamber of Commerce and the Business Roundtable Pending have all filed briefs to counter the SEC’s position.
RELATED ARTICLES
Fraud Prevention (1) – Avoiding the Bad Apples
Fraud Prevention (2) – CPO Strategies
(Procurement) Fraud Prevention (3) – Why It’s Important
Veterans Affairs Procurement Officer “Retires” Amid Corruption Scandal
CPO News – US Court Strikes Down Conflict Minerals Provision, Upholds Others
