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!

Recent Headlines - Updated September 18th

Thu,6:00 PM
iOS 8 In-Depth Review: Apple Opens Mobile OS to Developers, You Win
5:45 PM
iOS 8: Apple Finally Fixes its iPhone Weather App
5:09 PM
5th Ave Apple Store iPhone 6 Campout Stretches 3 Blocks
3:30 PM
iOS 8: Quickly Access Your Favorite Contacts with Home Button
2:15 PM
How to Install and Activate Third-Party Keyboards in iOS 8
1:47 PM
TMO Daily Observations: 2014-09-18
11:11 AM
Analyst: iPhone 6 Launch Weekend Sales to Fall Short, No Big Deal
10:04 AM
iOS 8: Taking Full Advantage of Interactive Notifications
9:22 AM
Apple TV Gets Beats Channel, Family Sharing
8:42 AM
iOS 8: See What’s Eating Your Battery
Wed,8:10 PM
Apple Releases Mavericks OS X 10.9.5 with Improvements to VPN and SMB Servers
7:57 PM
Apple Updates iTunes TOC with iOS 8 Family Sharing and App Bundle Pricing
  • __________
  • Buy Stuff, Support TMO!
  • Podcast: Mac Geek Gab
  • Podcast: Apple Weekly Report
  • TMO on Twitter!