Feds Begin Probe of Apple Stock Scandal

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Date: Monday, January 15th, 2007, 15:47
Category: News

An article over on MacObserver details how the San Francisco division of the U.S. Attorney’s office has launched its own criminal investigation into Apple Inc.’s backdated stock option scandal.

applelogo.jpg

The investigation, according to a story on financial industry news web site MarketWatch, will focus on former Apple attorney Wendy Howell and a grant of 7.5 million stock option shares to Apple Inc. CEO Steve Jobs at a company meeting in October of 2001.
Howell claims she was ordered to make changes in order to grant Jobs the stock options by Nancy Heinen, a member of Apple’s general counsel team. Heinen departed Apple in May of 2006 for reasons unrelated to the events in question while Howell was fired from the company in December of 2006 for reasons relating to the stock options issue.
Last month, Apple stated that an independent internal investigation revealed that the October, 2001 meeting had never taken place and that grant terms weren’t set until December, 2001.
The U.S. Attorney’s office has begun its own investigation into Apple’s backdated stock option grants and Jobs has claimed he was unaware of the falsified incident. Apple later cancelled the grant, rendering the decision of no financial gain to Jobs. Apple’s own internal investigation has cleared the CEO and the rest of the company’s current management team from any wrongdoing.
The stock grant would have been worth about $20 million to Jobs, who currently holds more than five million shares of Apple stock worth more than $500 million.
If you have any comments or feedback, let us know.


An article over on MacObserver details how the San Francisco division of the U.S. Attorney’s office has launched its own criminal investigation into Apple Inc.’s backdated stock option scandal.

applelogo.jpg

The investigation, according to a story on financial industry news web site MarketWatch, will focus on former Apple attorney Wendy Howell and a grant of 7.5 million stock option shares to Apple Inc. CEO Steve Jobs at a company meeting in October of 2001.
Howell claims she was ordered to make changes in order to grant Jobs the stock options by Nancy Heinen, a member of Apple’s general counsel team. Heinen departed Apple in May of 2006 for reasons unrelated to the events in question while Howell was fired from the company in December of 2006 for reasons relating to the stock options issue.
Last month, Apple stated that an independent internal investigation revealed that the October, 2001 meeting had never taken place and that grant terms weren’t set until December, 2001.
The U.S. Attorney’s office has begun its own investigation into Apple’s backdated stock option grants and Jobs has claimed he was unaware of the falsified incident. Apple later cancelled the grant, rendering the decision of no financial gain to Jobs. Apple’s own internal investigation has cleared the CEO and the rest of the company’s current management team from any wrongdoing.
The stock grant would have been worth about $20 million to Jobs, who currently holds more than five million shares of Apple stock worth more than $500 million.
If you have any comments or feedback, let us know.

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