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Apple Execs Reportedly Faked Options Documents

Posted by ScuttleMonkey on from the hands-in-the-cookie-jar dept.

theodp writes "Federal prosecutors are reportedly looking closely at stock option administration documents that were apparently falsified by Apple execs to maximize the profitability of option grants. While Apple has said CEO Steve Jobs did not profit from the stock-option backdating, Jobs has reportedly hired his own attorney to deal with the SEC and Justice Department."

8 of 172 comments (clear)

  1. It must be noted, though by Anonymous Coward · · Score: 5, Funny

    That like everything at Apple it was very easy to do. 3 clicks and options were faked. That's it!

    1. Re:It must be noted, though by BobNET · · Score: 5, Funny
      That like everything at Apple it was very easy to do. 3 clicks and options were faked. That's it!

      Yes, but it should be pointed out that if they weren't forced to use a one-button mouse it would have only taken one click...

  2. Lawyering up. by GodInHell · · Score: 5, Insightful

    While Apple has said CEO Steve Jobs did not profit from the stock-option backdating, Jobs has reportedly hired his own attorney to deal with the SEC and Justice Department." I hate it when comments like this come across as proof of wrong-doing. In buisiness I learned that you're a fool to act without the advice of a lawyer. As a law student I'm coming to understand that you're a damn fool to deal with the gov't without someone there to advise you.

    The purpose of a lawyer is to look after your interests while you conduct your business - they can warn you of impending trouble - and can nip a long drawn out investigation that will result in no arrests or charges right in the budd.

    It's stupid to blame someone for seeking protection from abuse.

    -GiH

  3. Way to flamebait the headline by $RANDOMLUSER · · Score: 5, Informative

    The SEC has been investigating "about 80" companies for this since July. Apple started their own internal investigation, which they're sharing with the SEC. Oh, and it's former employees who are being looked at. Oh, and maybe backdating isn't illegal, it just should be declared.

    Take a look here or here.

    --
    No folly is more costly than the folly of intolerant idealism. - Winston Churchill
  4. Not one to dogpile Apple, but... by hypermanng · · Score: 5, Insightful

    If Jobs was aware of the problems but didn't take appropriate action it could still damage the company more than the non-story linked might imply. Essentially, Jobs has been hailed as a hero by fanboys and shareholders alike, and anything significantly tarnishing his tenure might remove some of the aura of invulnerability Apple has acquired in recent years. I don't by any means imply that Jobs' um, job is in danger, but it might complicate business partnerships and other strategic moves that Apple needs to remain competitive. iPod dominance aside, Apple's position is at least assailable, if not so tenuous as it was a decade ago. To reach its growth targets it has to navigate agreements with telecom providers like Cingular as well as convince say, Intel and Toshiba to continue to give it most-favored-nation status. Apple isn't Dell or Microsoft to expect to make demands of suppliers and partners with impunity.

    Not yet, anyway, and maybe never, if the next round of initiatives (smart phone, media ventures, etc.) collapses.

    Distracting Jobs and blemishing his heretofore immaculate turtleneck might have more consequences than just an easy story for everyone from CNET to AP report and re-report.

    --
    I am the one true god. However, as an atheist, I don't believe in myself. I guess I have a self-esteem problem.
  5. Re:Shakespeare was right... by __aaclcg7560 · · Score: 5, Insightful

    You have to wonder if some laws weren't created for the express purpose of making unnecessary work that benefits the lawyers more than the public at large. The rules for stock options gets changed, an army of auditors scours the book, the lawyers are called in and the media has a field day. The public may or may not benefit from this. Auditors and lawyers are making a ton of money. Shareholders are getting soaked either way.

  6. Hi, I'm a Mac... by Anonymous Coward · · Score: 5, Funny

    ... and I'm the SEC. Please get in the car.

  7. Corporate crisis PR playbook by haggie · · Score: 5, Insightful

    Use one or more of the following: 1.) "We have launched our own internal investigation..." 2.) "We are cooperating with authorities..." 3.) Imply that the offending personnel have long since left the company... 4.) Imply that CEO was unaware of wrong-doing... 5.) Use the phrase "a few bad apples..." Apple can't use #5 (for obvious reasons), but they have used the other four. Sounds about as believable as Tony Snow discussing Iraq...