Former Apple GC Settles Option Backdating Case with SEC
 
August 25, 2008
 

On August 14, 2008, the SEC announced that it had settled an options backdating case against the former General Counsel of Apple Inc., Nancy Heinen. The complaint alleged that Heinen caused Apple to fraudulently backdate two large option grants to senior executives and altered company records to conceal the fraud. The complaint also alleged that the backdating resulted in Apple underreporting its expenses by nearly $40 million. Under the terms of the settlement, Heinen will pay $2.2 million in disgorgement, interest and penalties. She has also consented to the entry of an injunction that prohibits, among other things, future violations of Section 16(a) of the Securities Exchange Act of 1934 and securities anti-fraud provisions. The settlement also bars Heinen from serving as a director or officer for five years and, in resolution of a separate administrative proceeding against her, suspends Heinen from practicing as an attorney before the Commission for three years.

http://www.sec.gov/litigation/litreleases/2008/lr20683.htm