Prosecutors looking at falsified docs in Apple stock option matter
Posted by Dennis Sellers 
Dec 27, 2006 at 1:50pm
According to people with knowledge of Apple’s situation, federal prosecutors are looking closely at stock option administration documents that were apparently falsified by Apple officials to maximize the profitability of option grants to executives, reports Law.com.
The faked documents were revealed in a three-month internal probe—conducted by Quinn Emanuel Urquhart Oliver & Hedges—that concluded in October, said individuals familiar with the case who requested anonymity because it remains the subject of criminal and civil government investigations. Law.com says that the falsification of documents is perhaps the key issue for government officials trying to determine which of their 100-plus backdating investigations will be pursued as criminal matters and which will be limited to civil SEC inquiries.
Meanwhile, Apple CEO Steve Jobs has hired outside legal help in the matter, the article says. Separate from Apple’s lawyers at O’Melveny & Myers, he’s reported to have hired his own attorney to deal with the SEC and Justice Department.
As reported earlier this month, Apple has delayed filing its annual report with the Securities and Exchange Commission due to its ongoing investigation into stock option grants. In a filing with the SEC, the company said it needs to restate historical financial statements to record charges for compensation related to past grants. The stock options scandal involves the backdating of stock-option grants to inflate their value. You can read more here.
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Dennis Sellers
Dennis has been a newspaper editor/reporter (seven years) and teacher (seven years). He has over 4,000 magazine, newspaper and online articles to his credit. He has also covered the Mac and tech industries for over a decade for such online publications as MacCentral, MacMinute and now MacsimumNews.
