Friday, October 6th, 2006
Apple Inquiry Opens Way For Criminal Charges
About three months ago, Apple the computer maker announced an internal review of its stock option grants three months ago. Steve Jobs, chief executive, admitted knowing about “a few instances” of stock option backdating as Apple conceded that it had changed the grant date on stock options made on 15 days between 1997 and 2002. This would lead to restatement of some of its past financial statements as a result.
As a result, US Securities and Exchange Commission (SEC), the market watchdog have already embarked on its investigation on Apple.
The latest is that Kevin V. Ryan, US attorney for the Northern District of California, have also met up with Apple’s lawyers to examines certain unidentified people connected with its stock options practices
It is believed that Ryan is targeting at two unidentified former officers which had “raised serious concerns” over the accounting, recording and reporting of stock option grants.
Incidentally, Apple’s CFO, Fred Anderson resigned from the board on Wednesday with immediate effect in the “best interests” of the business.
Spokesmen for Apple, Mr Ryan and the SEC declined to comment on possible investigations.
The restatements could hit some of the windfall generated during Apple’s recent run of record profits, analysts said. It has reported profits totalling $3.1 billion during the past four years.
(Source:theAustralian.news.com (6/10/06)
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