The U.S. Securities and Exchange Commission has blame former Apple general counsel Nancy Heinen of fraudulently backdate stock option , the agency said Tuesday .
Heinen aid backdate pick chip in to Apple ’ ’s top policeman , causing the troupe to under - report its expense by almost $ 40 million , according to the SEC .
Tuesday afternoon , Heinen ’s lawyer issued a statement refuting the SEC ’s allegations . “ Nancy Heinen ’s unity is inculpable , ” stated Miles Ehrlich , a cooperator with Ramsey & Ehrlich .
The SEC file similar charges against Apple ’s former chief fiscal officer , Fred Anderson , but simultaneously settle that sheath . Anderson will yield $ 3.5 million in penalties in response to SEC charges that he should have noticed Heinen ’s action and corrected the company ’s fiscal argument , the SEC allege .
APDF of the SEC ’s complaintagainst the two former Apple executives is available online .
Despite the thrill against those employees , the SEC read that Apple itself was in the unmortgaged . The committal praise Apple for its “ swift , broad and over-the-top cooperation ” in the probe , including quick self - reporting , an internal probe , sharing the investigation results with the governing and implementing fresh controls to preclude next fraud .
reach for comment , Apple noted that no current employees had been cited by the SEC and referred to the agency ’s assertion summon the troupe ’s participating in the investigation .
In a response to the SEC case , Anderson ’s lawyer has blame the whole incident on Apple CEO Steve Jobs . Anderson had “ admonish ” Jobs that backdated selection had to be approved in official display board merging , and relied on Jobs ’ assurances that had happened , said Anderson ’s lawyer Jerome Roth in a statement released Tuesday .
In one example that occurred in February 2001 , Apple give 4.8 million options to six executive include Heinen and Anderson . To avoid report an $ 18.9 million recompense heraldic bearing , Heinen backdated the options to Jan. 17 when the caller portion price was much dispirited , the SEC said . She then told her staff to prepare off-key written document showing the board of directors had acted on that day . Anderson colluded by go bad to the disclose those actions to Apple ’s auditors , or insure that Apple ’s financial statement were correct , the SEC said .
Later , in December 2001 , the company granted 7.5 million options to Jobs . Again , Heinen avoided a $ 20.3 million bang by drafting minutes for a fake circuit board group meeting she said happened on Oct. 19 , the SEC said . That coming together had never occur .
Both Heinen and Anderson personally received million of dollars in unreported compensation through the backdating , the SEC say in its case .
But lawyer Ehrlich said those who accuse Heinen of sham “ misunderstand the facts . ”
“ Nancy did not backdate stock option and she did n’t lead astray anyone indoors or outside the company . Every action Nancy took was full understood and pass by the panel , ” he stated .
Ehrlich further noted that Heinen had been part of the management team that get the “ storybook turnabout ” at Apple in the early nineties .
Scores of corporations have been charged with standardised actions , but the Apple case was peculiarly onerous because Heinen and Anderson were specifically charged with ensure that the fellowship created accurate reports of administrator compensation .
“ or else , they failed in their obligation as gatekeepers and caused Apple to conceal millions of dollar sign in stock option expenses , ” said Marc Fagel , associate regional theater director of the SEC ’s San Francisco office .
In its lawsuit , the SEC is seek a penalization payment and repayment of those profit from Heinen , as well as an order barring her from swear out as an officer or music director of any other public company .
