The U.S. Attorney ’s Office for the Northern District of California is investigating the inventory options backdating activity of computer and consumer electronics manufacturer Apple Inc.
The federal action mechanism comes in the viewing of the disclosure by Apple last month that it make out an inner investigating of selection backdating and concluded that , although Apple chief executive officer Steve Jobs recommended some backdating of neckcloth options for himself and other Apple employees , he was n’t aware of the accounting deduction of those recommendations .
Luke Macaulay , a spokesman for the U.S. Attorney ’s Office in San Francisco , confirmed the cosmos of the probe , but did not provide additional details .
In a Dec. 29 , 2006 , file away with the U.S. Securities & Exchange Commission , Apple disclosed that an October 2001 board meeting at which 7.5 million options for problem were granted never actually took place and that the selection were n’t formally accord until December of that year . Backdating the options cede day of the month to October , though , gave Jobs and instant lucre of about $ 20 million because Apple stock was sell for less in October than it was in December .
Also in the filing , the Cupertino , California , companionship said it would take an $ 84 million after - tax boot against earnings to correct caudex options accountancy mistake in prior years . It acknowledged backdating about 6,400 stock alternative grants between 1997 and 2002 .
“ The board of directors is confident that the fellowship has even out the problems that led to the restatement , and it has complete authority in Steve Jobs and the senior management team , ” said Al Gore , the former U.S. vice prexy and the Apple director who chairman the limited internal investigative committee .
Backdating stock options is n’t needs illegal , but the practice must be break and properly accounted for , or it would violate federal regulations .
