$bbtitle
Apple Stock: 194.34 ( +0.3099 )
RSS RSS Twitter Twitter
Search:
AppleInsider.com Archives News Bytes Reviews Anonymous Mailer Submit Story AppleInsider Forums Mac Prices Polls Advertise on AppleInsider Contact AppleInsider
Save up to $280 on new MacBook Pros and up to $150 on brand new iMacs with special coupons: Mac Pricing Guide updated Nov 6th (Find the best prices on Macs).
Thursday, September 20, 2007

Steve Jobs subpoenaed by SEC for deposition - report

By AppleInsider Staff

Published: 10:40 AM EST

Apple chief executive Steve Jobs has been subpoenaed by the U.S. Securities and Exchange Commission to give a deposition in a backdating lawsuit against the company's former general counsel, Bloomberg is reporting.

The subpoena isn't part of an SEC investigation, people familiar with the matter say, but rather seeks Jobs's testimony in the Commission's lawsuit against Nancy Heinen, who was sued April 24 for allegedly backdating stock-option grants to Jobs and other members of Apple's executive team.

Heinen is being targeted primarily for her involvement in a December 2001 grant of 7.5 million stock options to Jobs that was backdated to October. The SEC is seeking to prove that Heinen's actions deceived investors because the true cost of the options were hidden by shifting the grant date from Dec. 18, when the stock was $21.01 a share, to Oct. 19, when it stood at $18.30.

The former top Apple legal aid is also charged with self-dealing on a grant to herself, as well as the fabrication of meeting minutes to show the Apple Board of Directors approved the aforementioned grant to Jobs on Oct. 19, 2001, when in fact no such meeting had taken place. In total, Heinen and former Apple chief financial officer Fred Anderson have been accused by the SEC of backdating more than $20 million in stock options in 2001 for Jobs, themselves and other executives.

According to a document filed in a California court last month, Heinen's lawyers are seeking to depose 45 people, including the recipients of the grants. She has denied the charges against her.

Anderson, who like Heinen resigned from his post at Apple ahead of the formal SEC crackdown, settled with the Commission in April. As part of the deal, he agreed to a fine of $150,000 and to repay about $3.5 million in disgorgement of profit, without admitting or denying any wrongdoing.

In a statement that followed his settlement with the SEC, Anderson largely shifted the blame for his involvement in a backdated 2001 Executive Team grant back to Jobs. He claimed that Jobs came to him in late January of 2001 and informed him that he had received the Board's approval for the massive grant, when in fact no approval had been granted.

Nevertheless, Jobs appears to have been cleared of any wrongdoing by the SEC. This month's subpoena, however, signifies the second time he's been called upon for questioning by federal investigators regarding his company's backdating scandal. In January, he arrived at the San Francisco federal building for an interview with the Justice Department and the Securities and Exchange Commission flanked by lawyers, though the subject of the meeting was never made public.

At issue for authorities at the time were over 6,400 additional company stock option grants which were similarly misdated between the years of 1997 and 2002. After cooperating with the SEC, Apple said in December that it would take an $84 million charge for the bulk of the fortuitously granted options, but maintained that its own internal investigation into the matter turned up no wrongdoing by Jobs or any other member of its current management team.

In April, the SEC issued an official statement that effectively wiped the slate clean for Apple as an organization and its problematic stock option grants, saying that the company's eagerness to make amends left little reason to consider punishment.

"Apple's cooperation consisted of, among other things, prompt self-reporting, an independent internal investigation, the sharing of the results of that investigation with the government, and the implementation of new controls designed to prevent the recurrence of fraudulent conduct," the release said.

Following that release, it was believed that the SEC's only remaining beef was with Heinen.

42 Comments ] 
  Print ] [ Story Link ] 


Pre-Order VMware Fusion 3
RSS
RSS
RSS
Mac Poker players can play Full Tilt Poker for Mac and get 100% to $600 free with bonus code MP600, courtesy of Online Poker Mac
AppleInsider Features
Hot Forum Topics

Recent Articles
Apple releases syncing fix for Apple TV 3.0
Doom game creator suggests Apple embarrassed about iPhone gaming
Report: Apple to launch Verizon iPhone in Q3 2010
Apple unveils holiday shopping in-store pickup option
Apple's Broadway store to open Saturday, Nov. 14
Bizarre lawsuits connect Apple with Sarah Jessica Parker, Lil' Wayne
Apple predicted to countersue in legal battle with Nokia
Windows 7 tops Vista software sales, lags behind in hardware
Report: Apple testing RFID swipe support in iPhone prototypes
Inside Google's Android and Apple's iPhone OS as core platforms
Apple looks to hire new iPhone OS security manager
Apple investigating 'Grab & Go' simplified cross-platform sync
Apple co-founder Steve Jobs named Fortune 'CEO of the Decade'
Review roundup: Motorola Droid, Verizon's first Android handset
Apple's latest 10.6.2 beta packs fixes for VMWare, iMacs, Apple TV
Latest Snow Leopard build resurrects Atom compatibility
Bell, Telus provide new iPhone competition in Canada
'Art project' video game attacks Apple Mac machines
Hacker cracks Apple's latest iPhone 3GS security measures
The Beatles go digital with apples, but still not Apple's iTunes
Apple announces App Store offerings top 100,000
Apple launches iTunes Music Movies with exclusive content
Parallels Desktop 5 for Mac claims speed superiority
AT&T brings lawsuit against Verizon over 'Map' ad campaign
Canalys Q3 2009: iPhone, RIM taking over smartphone market
Hit-or-miss site claims 4G iPhone part; French exclusivity ends
Despite disappointing China debut, iPhone's 2010 predicted to be strong
Philadelphia's first Apple store moves closer to reality
Exclusive look at Apple's new iPod touch-based EasyPay checkout
China Unicom gains 5,000 iPhone subscribers from launch
iPhone makes enterprise market inroads for Apple
Apple pitches $30-a-month iTunes TV subscriptions - report
Apple's iPhone sees tepid sales debut in China
Apple's 2010 capital expenditures could signal major investments
Apple rumored to disable Atom support with Mac OS X 10.6.2
Apple advertising guru says he's 'not going anywhere'
First Look: Apple's 27" big screen iMac
Last chance this year to save an extra 3% on iMacs, white MacBooks
Visionary behind Apple's '1984' advertisement steps down
Flash playback issues reported on Apple's new 27-inch iMacs

AppleInsider Market Place

Sell your Laptop - working or not. Free shipping.: Get an instant online quote and sell your laptop today !

Believe in Office: Save Up To 25% on Office 2004 For Mac. Visit Our Site for Details!

IBackup - SMB Online Backup: IBackup is the preferred online storage and backup service of choice for SMBs for its ease of use, security and value. Offers automated backup and restore, file selection and securiy.

Download free software - everyday updated freeware files

 
Advertisements








AppleInsider RSS Feed
AppleInsider © 1997-2008
Please review our Privacy Policy.
Written/Edited/Compiled by the AppleInsider Staff.