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View Full Version : SEC Settles with Anderson, Pursuing Heinen




MacRumors
Apr 24, 2007, 09:54 AM
http://www.macrumors.com/images/macrumorsthreadlogo.gif (http://www.macrumors.com)

As followup to the ongoing backdating story at Apple, Reuters (http://money.cnn.com/2007/04/24/news/companies/apple_cfo.reut/index.htm) reports that former Apple CFO Fred Anderson has settled with the SEC regarding the backdating issues surrounding Apple.

The settlement includes a $150,000 fine and repayment of option gains of about $3.5 million. This settlement avoids any admission of wrongdoing from the former CFO.

Meanwhile, it appears that the SEC will pursue legal action against former general counsel Nancy Heinen.

Heinen, who will be accused of manipulating one of her own option awards as well as a grant to Steve Jobs, Apple's chief executive, plans to contest the charges, the Journal reported.

The most recent reports (http://www.macrumors.com/2007/04/21/jobs-likely-to-avoid-criminal-charges-in-options-probe/) have cleared Steve Jobs of any charges regarding the matter.



roland.g
Apr 24, 2007, 09:59 AM
The year where we hear just as much or more about Apple Executives and Stock scandals than we do about new products. 2007, It's just the beginning. ;)

dernhelm
Apr 24, 2007, 10:02 AM
The year where we hear just as much or more about Apple Executives and Stock scandals than we do about new products. 2007, It's just the beginning. ;)

It sure seems like it, doesn't it? But if they settled with Anderson, and don't pursue Jobs (the only two high profile people in the case) the story value drops dramatically.

Which just might mean another month, then done.

Woot!

:D

HiRez
Apr 24, 2007, 10:17 AM
Why on earth can you "settle" with the government? It's funny how you can basically buy your way out of being a criminal. You pay them $3.5 million and now nothing happened? "I knowingly tried to steal millions of dollars from Apple's shareholders, but yeah, I'm not guilty because I'm giving it to the government instead". Ah, the American Way.

twoodcc
Apr 24, 2007, 10:20 AM
well i guess this is partly good news, and partly bad.

at least Anderson settled and hopefully it's over with for him.

but we'll be hearing more about Heinen though

Maccus Aurelius
Apr 24, 2007, 10:28 AM
I wish I was rich. You poor stockholders would be my personal playthings, and then I can bribe the gub'mint. I kid, you guys are great.

akadmon
Apr 24, 2007, 10:34 AM
Why on earth can you "settle" with the government? It's funny how you can basically buy your way out of being a criminal. You pay them $3.5 million and now nothing happened? "I knowingly tried to steal millions of dollars from Apple's shareholders, but yeah, I'm not guilty because I'm giving it to the government instead". Ah, the American Way.

Right -- if the guy is truly innocent he should ask for his day in court.

I say we throw the lot out and start from scratch! Any volunteers for CEO?

BigPrince
Apr 24, 2007, 10:38 AM
Why on earth can you "settle" with the government? It's funny how you can basically buy your way out of being a criminal. You pay them $3.5 million and now nothing happened? "I knowingly tried to steal millions of dollars from Apple's shareholders, but yeah, I'm not guilty because I'm giving it to the government instead". Ah, the American Way.

Though it does appear to be quite sad, it probably saved the American Tax Payers much money to go after this guy and then later the cost of jailing him.

Clive At Five
Apr 24, 2007, 10:39 AM
Like I said. A slap on the wrist.

3.5 million is like nothing to them.

Makes me sick.

-Clive

Maccus Aurelius
Apr 24, 2007, 10:41 AM
Whatever happened to the good old days when they put people in stocks and kids threw manure and tomatoes?

BigPrince
Apr 24, 2007, 10:43 AM
It could be that much for one's legal TEAM. This also avoids him going to jail and he never admitted any wrong doing for the mere price of 3.5 mils.

err ****ing edits

studiomusic
Apr 24, 2007, 11:11 AM
Why on earth can you "settle" with the government? It's funny how you can basically buy your way out of being a criminal. You pay them $3.5 million and now nothing happened? "I knowingly tried to steal millions of dollars from Apple's shareholders, but yeah, I'm not guilty because I'm giving it to the government instead". Ah, the American Way.

He pays Apple the 3.5mil, and the SEC the 150grand fine.

electronboy
Apr 24, 2007, 11:13 AM
Maybe we could spell Nancy's last name the same throughout the article. If we are going to report bad news about her, we could at least get her last name right.

Irish1978
Apr 24, 2007, 11:19 AM
Why on earth can you "settle" with the government? It's funny how you can basically buy your way out of being a criminal. You pay them $3.5 million and now nothing happened? "I knowingly tried to steal millions of dollars from Apple's shareholders, but yeah, I'm not guilty because I'm giving it to the government instead". Ah, the American Way.


I agree 100%. America, the land of hypocrites!

TheBobcat
Apr 24, 2007, 11:37 AM
You can settle with the government because if you admit you're guilty and spare them the cost of the judges, court time, laywers, etc, they'll agree to give you a less stiff penalty.

I mean, these are white collar crimes, nothing that bad ever happens to these people. Might as well save me the tax dollars, she didn't pull a Ken Lay or anything.

BigPrince
Apr 24, 2007, 11:41 AM
.

Just another Tuesday with no new hardware...:mad:
people stop kidding yourseleves.


Its a bit late to introuduce new upgrades now with SR right around the corner...

beside we recently got introduced to an 8 core mac pro to wet your mouth.

Amdahl
Apr 24, 2007, 11:43 AM
The most recent reports have cleared Steve Jobs of any charges regarding the matter.

I think what you meant to say is that they can't find enough evidence to make the charges worth trying. Nothing has been found that 'clears' Jobs of anything. He's the ***** CEO, and he got the money. His excuse was that he didn't 'appreciate' the 'accounting implications.' So, he knew what was going on, he just didn't realize it had 'implications.'

"Yes, your honor, I knew I was putting money in my pocket, I just didn't realize it belonged to anybody!"

Mind you, this is the man who walks into meetings with Disney, record companies, hardware companies, and f's them in the a**. And has been doing it for 30 years! Didn't understand the 'implications??!?' Yeah, right!

EagerDragon
Apr 24, 2007, 11:46 AM
I wish I was rich. You poor stockholders would be my personal playthings, and then I can bribe the gub'mint. I kid, you guys are great.

IRS is looking for you after that.

Looks like some of these folks wont be able to go out to lunch for a week or so. Some of these execs make way too much money.

I bet shockholders see little or none of the money.

Gasu E.
Apr 24, 2007, 11:56 AM
http://www.macrumors.com/images/macrumorsthreadlogo.gif (http://www.macrumors.com)
The settlement includes a $150,000 fine and repayment of option gains of about $3.5 million. QUOTE]

[QUOTE=HiRez;3579491]Why on earth can you "settle" with the government? It's funny how you can basically buy your way out of being a criminal. You pay them $3.5 million and now nothing happened? "I knowingly tried to steal millions of dollars from Apple's shareholders, but yeah, I'm not guilty because I'm giving it to the government instead". Ah, the American Way.

"Fine" = giving it to the government ($150K).

"Repayment" = giving it back to the company (and therefore the stockholders) ($3.5M).

Digital Skunk
Apr 24, 2007, 12:25 PM
Yawn!!!

Great reporting really it is. I am glad that I can get news on Apple's other related happenings. But....

Where is my 12" MacBook Pro/13" MacBook with no polycarbonate case and backlit keyboard and dedicated graphics memory? (>_<) :mad:

Where is my iPod HD with all functions and body construction like iPhone without the phone part and flash based HDD at 32 - 64GB? (>_<) :mad:

Where is my 24" iMac with Quad Core chip and 1TB Hitachi HDD? (>_<) :mad:

Ouch... my head hurts from all that squinting. :D

Digital Skunk
Apr 24, 2007, 12:42 PM
people stop kidding yourseleves.


Its a bit late to introuduce new upgrades now with SR right around the corner...

beside we recently got introduced to an 8 core mac pro to wet your mouth.

We are looking for something a tad bit below $4000 - $4600. Maybe around $1500 give or take a dollar or so. :rolleyes:

mac_airport
Apr 24, 2007, 12:46 PM
The Wall Street Journal is now posting the following text under the banner 'Breaking News' on the site's home page:

"Former Apple CFO Fred Anderson issues statement blaming Steve Jobs for backdated options grant. Full article coming soon."

akadmon
Apr 24, 2007, 12:58 PM
The Wall Street Journal is now posting the following text under the banner 'Breaking News' on the site's home page:

"Former Apple CFO Fred Anderson issues statement blaming Steve Jobs for backdated options grant. Full article coming soon."

Man, this is better than a Brazilian soap opera! :D

MacGuffin
Apr 24, 2007, 01:06 PM
A millionaire being allowed to give back his piles of ill-got loot with a slap on the wrist and no admission of guilt?

Whew! We were all worried there for a moment that Fred might get mistreated. Thank god that even the nobles get properly handled (http://bobdylan.com/moderntimes/songs/hattie.html).

Raidersmojo
Apr 24, 2007, 01:13 PM
good thing jobs isn't having anything brought against him, positive news.

and why is everyone getting upset over him having to repay 3.5 mil and what not and getting away with it? lifes not fair deal with it.

if you had millions of dollars and they went "well...if you do this this and this you can avoid jail time" you'd do it in a heart beat too

guy worked hard to get where he is at, I'm fine with him or anyone else being able to pay off whoever to get out of trouble. its just the way things are, everyone would do it if they had that kind of cash/power

HiRez
Apr 24, 2007, 01:19 PM
[QUOTE=Macrumors;3579412]http://www.macrumors.com/images/macrumorsthreadlogo.gif (http://www.macrumors.com)
The settlement includes a $150,000 fine and repayment of option gains of about $3.5 million. QUOTE]



"Fine" = giving it to the government ($150K).

"Repayment" = giving it back to the company (and therefore the stockholders) ($3.5M).Yeah, I misread that, he is giving what I guess is the amount "missing" back to Apple, but still, he basically bought off his "innocence". If he really knowingly did it, there needs to be an explicit admission of guilt, you shouldn't be able to erase facts with cash. I know that's how it works, but it's ugly.

jaw04005
Apr 24, 2007, 01:25 PM
Why on earth can you "settle" with the government?.

Oh, I don't know maybe because it eliminates a lengthy trial that involves countless attorneys, judges, witnesses, staff and jurors. Therefore, saving taxpayers money. :rolleyes:

Peace
Apr 24, 2007, 01:35 PM
There's a common misconception here.
The SEC is doing civil lawsuits against the two involved.The DOJ is still pondering criminal charges.
And

Nancy Heinen ( SP?) has declared her innocence and will say in court that she was directed by the board AND CEO to do the backdating.

The "CEO" part is important because if she can prove in court via the emails she says she has it implicates Steve Jobs.

This may sound like it's over but it's not.

jholzner
Apr 24, 2007, 01:38 PM
You can settle with the government because if you admit you're guilty and spare them the cost of the judges, court time, laywers, etc, they'll agree to give you a less stiff penalty.

He didn't admit he was guilty. He paid the fine and part of the settlement was that he does not admit to any wrong doing.

MacbookSwitcher
Apr 24, 2007, 01:57 PM
I'm surprised no one has said this is a Microsoft conspiracy yet.

JJayguy23
Apr 24, 2007, 02:32 PM
So was she stealing money, like Martha Stewart?

Maestro64
Apr 24, 2007, 02:54 PM
So was she stealing money, like Martha Stewart?

No, Martha lied to the governement and did not cooperated, thus the reason she was miss homemake at the big house.

This just goes to show, if you cooperate and let the government slap your hand publicly you will not go to jail. But if you are going to play hardball, well you know what happens.

Every person or company who tries to take on the government and say they are bigger then than the government ends up loosing, look at Rockerfella, Standard Oil, AT&T, Miscrosoft, Bill Gates, Martha, Enron and the list goes on...

Yes, Bill Gates, rumors have it that part of the agreement MS stuck with government was that Bill had to step down, now look at MS stock price been stuck at the same place for the last 3 or 4 yrs and Bill got no ricker.

akadmon
Apr 24, 2007, 02:57 PM
Figuratively speaking :D

http://home.businesswire.com/portal/site/google/index.jsp?ndmViewId=news_view&newsId=20070424006168&newsLang=en

Rocketman
Apr 24, 2007, 03:21 PM
News as of this moment:

Despite Job's being let go by SEC, former Apple employee Fred Anderson has "pointed the finger" "squarely at Steve Jobs".

Source: CNBC Closing Bell

Rocketman

Rower_CPU
Apr 24, 2007, 04:30 PM
Moderator note: Several off-topic/personal comments have been removed from this thread. We try to keep news threads as on-topic as possible, so discussion on political/philosophical matters should be taken elsewhere. Your assistance in reporting these off-topic posts is appreciated. :)

quantman
Apr 24, 2007, 04:55 PM
There's a common misconception here.
The SEC is doing civil lawsuits against the two involved.The DOJ is still pondering criminal charges.
And

Nancy Heinen ( SP?) has declared her innocence and will say in court that she was directed by the board AND CEO to do the backdating.

The "CEO" part is important because if she can prove in court via the emails she says she has it implicates Steve Jobs.

This may sound like it's over but it's not.

Nancy and SEC will soon come to a settlement after the news dies down. SEC did not want to settle with both and announce it was all done.

SEC holding out for more with Nancy than they got with Fred Anderson, i.e. Fred can still serve on corp boards etc and he is pretty much intact. Nancy, I'm sure wants same deal as Fred. SEC does not want to do thay yet, but they will in the next few months. SEC has control of the PR and does not want to send wrong all settled msg just yet.

A look and legal analysis will show that SEC will not be able to prove their case against Nancy and so will settle with her as well. Just not now, it would look bad for the SEC.

I have a feeling you are not experienced with how the SEC does these things.

Maestro64
Apr 24, 2007, 05:24 PM
To my earlier point this is what the SEC said about apple and you wonder why they are getting off free so to say

The SEC also announced that it would not sanction Apple for its backdated options. In fact, it went out of its way to praise the company for "swift, extensive, and extraordinary cooperation.''

It also looks like Nancy is not going to get a deal, The SEC at the end of today filled formal charges against her. With that said she can not work the same kind of deal, she either has to plead guitly, or no contest or fight now. I doubt the SEC will drop the charges now.

Here is what the SEC had to say about her

Responding to a claim by a lawyer for Nancy Heinan, the other former Apple exec caught in the suit, that "every action that Nancy took was fully understood and authorized by Apple's board of directors," the SEC pointedly rejected her defense.

"The board, as they should, looked to general counsel for legal advice and she led them down this illegal path," said SEC staff attorney Sahil Desai.

In other words, it was Heinan's (and presumably Anderson's) job to make sure the backdating was legally done, not the board's and not the CEO's. Heinan, who is fighting the SEC charges, was unavailable for comment.

The other part of Fred's deal was he will still be allow to be an officer of a public company. Which is a bigger deal then the fine he paid.