$bbtitle
Apple Stock: 140.02 ( -2.81 )
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 $250 on new MacBook Pros and up to $180 on new iMacs: Mac Pricing Guide updated July 3rd (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 ] 


(13") $1,094.00 (15") $1,579.00 (15") $2,089.00
(13") $1,394.00 (15") $1,799.00 (17") $2,249.00
See more prices in AppleInsider's Mac Price Guide
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
Countering rumor says Apple and NVIDIA "doing just fine"
Breaking: shot fired, one wounded at Virginia-based Apple Store
First iPhone 3GS jailbreaking tool available for download
iPhone 3GS marked AT&T's "best-ever sales day"
iPhone overheating problems could see aid from new patent
Apple working to fix unreleased iPhone SMS exploit
Pesky Psystar to emerge from Chapter 11 with new Mac offering
Apple looks towards fingerprint-based multi-touch controls
Apple developing "active packaging" for iPods and iPhones
Apple may drop NVIDIA chips in Macs following contract fight
Apple covering all the bases with Mac OS X 10.5.8 betas
University of Florida's PharmD program to require iPod touch
Apple's Mac shipments rebounding sharply in recent weeks
iPhone Software 3.1 to deliver new video and Voice Control features
Apple posts iPhone OS 3.1 beta, SDK with new video extensions
White iPhone 3GS units discoloring from excessive heat
Maine's expanded MacBook program the 'largest of its kind'
Mozilla releases faster, safer, smarter version of Firefox browser
Dell working on pocket-sized Internet gadget
MacBook Air firmware updated to support replacement batteries
Apple sees brief iPhone 3GS shortages; NVIDIA intros CS4 plugins
Steve Jobs returns to work at Apple
Apple, other phone makers agree on standard charger for Europe
Apple posts new Snow Leopard, 10.5.8 seeds
iPhone marketing head goes to VC firm; iTunes breaks records after Jackson death
Briefly: more affordable iMacs from Apple expected by fall
Apple's latest high-end MacBook Air slower than predecessor
Apple's profit margin on Mac minis slimmer than usual
Apple ups stake in iPhone graphics chip designer
Windows 7 priced below Vista, to allow upgrades from XP
Mossberg: New MacBook Pro has best battery life "ever tested"
Apple sued over 'false' iTunes gift card promises
Proof-of-concept ports Leopard's icon stacks to iPhone (video)
iPhone 3GS spurs 400% increase in mobile video uploads to YouTube
Tidbit: Apple naming Leopard point release after ancient gods
Upgrade fee sees few iPod touch users updating to 3.0 software
Apple exploring wireless system for quantifying the unquantifiable
Bogged down AT&T 3G to clear in months; Buffett criticizes Jobs
Apple updates Apple TV, Remote app to allow multi-touch control [u]
Apple undersells, over-delivers on iPhone 3GS speed - report

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.