The former top lawyer at Apple has agreed to pay $2.2m to settle federal charges she illegally cooked the company's financial books to conceal backdated stock options issued to CEO Steve Jobs and other top executives.
Nancy Heinen, Apple's former general counsel, also agreed to be barred for five years from serving as an officer or director of any public company. The agreement with the Securities and Exchange commission settles a case that was scheduled to go to trial next year, at which Jobs was expected to be called as a witness. Heinen neither admitted nor denied wrongdoing.
In April, 2007, SEC attorneys alleged Heinen caused Apple to fraudulently backdate two options grants to senior executives - including herself. By misrepresenting the true dates that the grants were awarded, the company underreported $40m in expenses.
Apple has admitted that Jobs knew of the backdating, but has said he didn't personally benefit from them and didn't know the practice was illegal. He has never been charged in the matter. Civil lawsuits still allege he is culpable. ®