As an update to the SEC’s investigation of Apple and Steve Jobs regarding stock options backdating, it appears, Steve may be in the clear. Not only did the internal audits conducted by the SEC prove to be ok, Steve has made a clear case that as CEO he may not have known about the legal subtext of backdating that may have been carried out by his second-in-command employees. The SEC sued both Apple’s Chief Financial Officer Fred Thompson and ex-General Counsel Nancy Heinen last year for apparent backdating-related fraud, leaving Jobs, at this point, out of focus.
While Steve may be in the clear with the internal audits conducted, that does not necessarily mean that the SEC does not have a case. The SEC only has to prove that the executive, in this case Steve Jobs, knew the alleged backdating was occurring and therefore disregarding the accounting rules put in place by the SEC to regulate such behavior. If the SEC feels they would have evidentiary support to make this case, they can proceed with action.
The interesting part is that the government may in fact do nothing even if some evidence is found. A few high profile attorneys commented on the case, including Anthony Sabino, who is a white collar defender and professor at St. John’s University in New York, stating that because of Steve Jobs “immensely well-known and well-respected” status in the business world, the government may not want to press the matter any further.
While it is still pending whether action will be taken against Steve or not, I’d have to agree with Mr. Sabino’s sentiments on the matter that could be facing the bar. Especially in a high profile case, where a jury will serve, the jury represents the American public’s opinion and that may leave for a very one-sided jury, no matter what the selection process.
This blog is based an article found at reuters.com regarding the SEC options suit
http://www.reuters.com/article/PBLSHG/idUSN0736611420080530?pageNumber=4&virtualBrandChannel=10112
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