Securities and Exchange Commission v. Nancy R. Heinen
U.S. Securities and Exchange Commission
SEC Litigation Release No. 20683 (2008)
As Apple's general counsel, Heinen (defendant) allegedly caused two large in-the-money stock option grants -- to six executives including herself in 2001, and to CEO Steve Jobs later that year -- to be backdated to dates when Apple's stock price was lower, avoiding roughly $39.2 million in required compensation-expense reporting, and allegedly signed fictitious board minutes falsely representing board approval at a meeting that never occurred; without admitting or denying the charges, Heinen settled with the SEC in 2008.
Whether a general counsel who assists a corporation in filing inaccurate financial statements is subject to sanctions including an injunction, disgorgement, interest, and penalties, as well as suspension from practice before the SEC or as a public-company officer or director.