Foxconn is one of the main manufacturing partners of Apple, where the company is responsible for putting together Apple products like the iPhone. Given that it is not possible for every component to be perfect, and also due to quality assurance, naturally some components are rejected due to them being faulty.

This is a common practice amongst all companies, but according to a report from Taiwan News, it seems some Foxconn managers have been involved in a fraudulent scheme where working together with a Taiwanese businessman, they took the defective components to assemble iPhones which were then sold under the guise of being genuine and legitimate Apple products. This scheme is said to have netted those involved as much as $43 million in revenue.

Under the company’s normal operating procedures, defective iPhone components would typically be destroyed, but in this instance, the components were not destroyed and were used to create iPhones. Apparently this scheme has been going on for the past three years, but it was only earlier this year in June that Apple and its CEO, Tim Cook, were notified about it.

Foxconn has since confirmed that an investigation is underway and while the company’s former chairman, Terry Guo, was declined to comment on the matter, he did suggest that for a company of Foxconn’s size and due to the sheer number of employees they hire, “Unreasonable things may happen to one or two workers.”

Filed in Apple >Cellphones. Read more about , and . Source: appleinsider