Former Apple Counsel Hammers Out $2.2M Backdating Settlement

August 15, 2008 ( - Federal regulators have worked out a $2.2 million settlement with Apple's former chief counsel of allegations she illegally backdated stock options for top executives and forged company documents to cover it up.

class=”bodytext”> The deal came between the Securities and Exchange Commission (SEC) and attorney Nancy Heinen, according to a San Jose Mercury News report. As part of the deal, Heinen, 51, cannot serve as an official of any public company for five years, the SEC said.

The lawsuit filed last year accused Heinen of fraudulently backdating two large options grants in 2001 (See  SEC Charges Heinen in Apple Backdating Scheme ). Regulators said her actions caused the company to under-report its expenses by $40 million.

The SEC alleged that Heinen tried to conceal the backdating by directing her staff to prepare false documents and that she signed fictitious minutes from a board of directors meeting that never occurred.

Heinen and former chief financial officer Fred Anderson were the only two Apple executives named in civil lawsuits by the SEC. Anderson negotiated a similar settlement last year.