The Mac Observer

Skip navigational links

You're viewing an article in TMO's historic archive vault. Here, we've preserved the comments and how the site looked along with the article. Use this link to view the article on our current site:
Apple Stock Backdating May Include Fake Documents

Apple Stock Backdating May Include Fake Documents

by , 10:10 AM EST, December 27th, 2006

The probe into improperly backdated stock options at Apple Computer could take an interesting turn now that the investigation may have uncovered intentionally falsified documents. According to Law.com, the documents were manipulated to maximize the profit executives receive from option grants.

The faked stock options documents were uncovered during the independent investigation into Apple's option grants by the law firm of Quinn Emanuel Urquhart Oliver & Hedges. Those documents will likely be key evidence should the U.S. government file criminal or civil charges against any Apple executives.

Apple announced in June that the internal investigation uncovered irregularities in several option grants issued between 1997 and 2001. At that time, CEO Steve Jobs commented "Apple is a quality company, and we are proactively and transparently disclosing what we have discovered to the SEC."

In October, the company announced that the investigation did not find any misconduct on the part of the current management team, but noted "serious concerns regarding the actions of two former officers." The report also stated that Mr. Jobs was aware of "a few instances" where favorable grant dates had been selected, but that he was unaware of the accounting implications."

Although the statement said that Mr. Jobs is not suspected of any misconduct, he has hired his own lawyers outside Apple's legal representation.

Apple delayed filing some documents with the SEC pending the outcome of the internal investigation. Those delayed documents, which include some figures for the past few fiscal quarters, are due to the SEC this Friday.

News of the possible falsified documents is hurting Apple's stock today. Currently, Apple is trading at US$78.07, down 3.44 (4.22%).


If you are interested in Apple's stock, join our forum members in the Apple Finance Boards, a moderated forum for Apple Investors and people who are interested in Apple's financial dealings. For other stories regarding Apple's stock activity, visit our updated Apple Stock Watch Special Report.

Digg!

Observer Comments

Show: Subjects Only | Full Comments
Close Name:Bosco Posts: 1002 Joined: 03 Jun 2002
Subject: No problem.

Shaw Wu and Gene Munster told us this backdated options thing was not a problem. So I'm assuming it's not. My AAPL target price: $379.

Close Name:Guest
Subject: Jobs is a scumbag. No problem.

LOL

Close Name:geoduck Posts: 1922 Joined: 30 Dec 2003
Subject:

Quote
Guest wrote:
LOL

The preceding message was brought to you by The Daily Troll. Remember, if you want silly statements from anonymous posters, that have little to anything to do with the discussion, consult the The Daily Troll.

Comment on this Article


You cannot edit your comments.   You cannot delete your comments.

Comments are currently closed. Please email the author instead.


Recent Headlines - Updated February 12th

Sat, 4:11 PM
MacOS KenDensed - MacOS KenDensed: iPad 3 Frenzy, Big-time Apple & Steve Jobs, G-Man
Fri, 8:10 PM
News - Apple Sues Motorola Mobility in California Over German Case
7:54 PM
Free on iTunes - OnLive Desktop: Windows & Office on Your iPad
7:43 PM
Product News - Apple Rolls Out MacBook Air Configurations for Education
6:35 PM
Just a Peek - Battle Pocket Bulge With The Hint for iPhone
6:01 PM
Rumor - Apple Reportedly Bringing MacBook Air Styling to Pro Line
4:50 PM
Particle Debris - The Hidden Gotchas of Browser Security
3:56 PM
Apple Stock Watch - Analyst: Paying a Dividend Makes Sense for Apple
2:58 PM
Deal Brothers - iMac 27-inch 2.93GHz Intel Quad-Core i7 processor:  $1,999
2:45 PM
In-Depth Review - Theodolite App for iOS is Breathtaking
12:52 PM
Apple Stock Watch - Mizuho Securities Starts Apple Coverage with $635 Target
11:35 AM
Hot Forum Topic - Forum Poll: Are You Planning on Buying a New iPad?

The Mac Observer Reader Specials

  • TypeStyler 11 is now in the Mac App Store!! -- Special Introductory Price of $59.95!! -- To Buy From The Mac App Store Click Here Now!! Or buy direct from Strider Software.
  • Mac RAM Upgrades: MacBook Pro 16GB kits $475, 8GB Kits for $119.99! iMac 16GB RAM Kits (4x 4GB) for $229.99! Mac Pro Memory 32GB Kit for $399.99, 64GB Kit for $889.99! Mac Hard Drives 2TB Seagate SATA II for $249.99! Click Here!
  • Poker Mac If you're using a Mac, then you've gotta check out Online Poker Mac. This mac poker and online casino mac site actually does the unthinkable, it actually rewards!
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!