Feeds

SEC charges two over Apple options backdating

Ex-CFO hands back $3.5m of gains

Beginner's guide to SSL certificates

Updated The Securities and Exchange Commision (SEC) today accused Apple's former top lawyer of fraudulently backdating options to under-report company expenses by $40m.

Nancy Heinen is also accused of altering company records to conceal the fraud. She is contesting the charges, the WSJ reports today.

The SEC also filed charges against former CFO Fred Anderson for being asleep on his watch. He should have noticed what Heinen had done, the regulator said. It has already settled with Anderson, who will kiss goodbye to $3.5m worth of option gains. The settlement won't see Anderson admit any wrongdoing.

Anderson will also pay a fine of $150,000 to the government agency, which has been trawling Silicon Valley for foul play in the awarding of options during the tech boom.

Options backdating was a favoured way for tech firms to attract and award talent, particularly in the frothier days of the dot com boom. It referred to the setting of option prices not at the price the day they were granted but at another, typically earlier day, when the price was lower. This gave the option more room to increase in value by the time the execs cashed them in.

The practice is not illegal, as long as the backdating is disclosed to shareholders and the relevant authorities. It was the small matter of informing shareholders that seems to have defeated many leading firms in the information technology industry.

Apple coughed to backdating options earlier this year, offering to make up the shortfall to employees who were affected.®

Beginner's guide to SSL certificates

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
In the next four weeks, 100 people will decide the future of the web
While America tucks into Thanksgiving turkey, the world will be taking over the net
Microsoft EU warns: If you have ties to the US, Feds can get your data
European corps can't afford to get complacent while American Big Biz battles Uncle Sam
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.