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SEC closes in on two former Apple executives

DailyTech previously reported Steve Jobs will likely not be indicted by the Securities and Exchange Commission relating to a backdating scandal.  However, the SEC today filed legal action against two former top-level Apple executives -- chief financial officer Fred Anderson and former Apple general counsel Nancy Heinen, both accused of violating securities fraud laws.  They are allegedly responsible for backdating a 2001 stock option grant that allowed Jobs to receive 7.5 million shares.

The SEC believes Heinen allowed the backdating, but Anderson did not attempt to stop any illegal activities. In an official statement, Anderson said the backdating in 2001 was led by Jobs -- an announcement that severely damages Jobs' defense of saying he didn't know about the backdating accounting.

Anderson also filed a settlement with the SEC that will force him to pay up to $3.5 million in fines, but let him escape liability of the incident.

Heinen unexpectedly resigned from the company in May, two months before Apple unveiled an internal investigation into the backdating.  Her attorneys are claiming she is the scapegoat in the Apple investigation.  Heinen said that she will fervently fight the SEC charges.

The internal Apple investigation "raised serious concerns regarding the actions of two former officers in connection with the accounting, recording and reporting of stock option grants," Apple reported in a December 2006 SEC filing.

It is unknown if the SEC will file any more charges against individuals who were involved with the case, but Apple itself is in the clear.




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