August 14th, 2008
Apple's former counsel settles with SEC
Nancy R. Heinen, the former general counsel of Apple and considered by some to be the sacrificial lamb in the company’s options backdating scandal, has settled with the Securities and Exchange Commission. 
Without admission or denial of the SEC’s accusations, Heinen has agreed to a fine of $2.2 million. In addition, she is barred from serving as an officer or director of any public company for five years and is also barred from appearing or practicing as an attorney before the commission for three years.
According to the complaint filed in federal court, it was because of Heinen that Apple fraudulently backdated two large stock options grants to senior Apple executives, including CEO Steve Jobs, and altered company records to conceal the backdating. Because of the backdating, Apple underreported its expenses by nearly $40 million, according to the complaint.
Last year, the commission settled with former Chief Financial Officer Fred Anderson, who agreed to pay a fine of about $150,000 and repay grants of about $3.5 million without admitting any wrongdoing or being barred from serving as an officer or board member of public companies.
In late 2006, an investigation cleared CEO Steve Jobs of any wrongdoing in the matter.
Sam Diaz is a senior editor at ZDNet. See his full profile and disclosure of his industry affiliations.
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