To: inaflash who wrote (68699 ) 9/17/2007 10:54:59 AM From: Lizzie Tudor Read Replies (1) | Respond to actually, that piece of evidence was from 2004, and the period in question was 2000-2002, and I am pretty certain by 2004 everybody knew there were issues with this, but in 2000-2002 *nobody knew it*. And what Reyes said in that email is wrong anyway which just shows he didn't understand the issue of expensing in the money grants. it actually bolsters the defense case putting up an email like that but juries are offbase and biased against executives and silicon valley so it doesn't matter.The Executive Team grant, which was nominally dated January 17, 2001, worked like this, according to the SEC complaint. On January 30 Heinen emailed CEO Jobs and CFO Anderson spreadsheets laying out Apple’s stock prices for every day in the month of January, and recommending possible dates on which to retroactively date the grant. In her email to Jobs she wrote, “To avoid any perception that the Board was acting in appropriately [sic] for insiders prior to Macworld announcements, I suggest we use Jan. 10, the day after your Macworld keynote, at $16.563. That was one of the lowest closes of the month, after the $14.875 price on Jan 2. I don’t think the [Executive Team] would object to the $1.688 difference to avoid claims of inappropriate conduct.”The conversation Anderson says he had with Jobs — in which he explained the accounting ramifications of choosing any date prior to when the board had actually given its approval — would have had to occur early in the process of awarding the grant, at a time when Jobs was planning to use the Jan. 2 date for the grant (the date Heinen thought would look too much like springloading). Anderson’s attorney says that Anderson “was told by Mr. Jobs that the Board had given its prior approval and the Board would verify it.” When asked about this account by the Wall Street Journal yesterday, Jobs referred the question to an Apple spokesperson, who declined comment.legalpad.blogs.fortune.com For starters, Reyes—unlike executives such as Apple (AAPL) CEO Steve Jobs and former United Healthcare (UNH) CEO Bill McGuire—did not receive backdated options himself. "This will set a tone that an executive can have mens rea—"a guilty mind"—even if he didn't personally line his own pockets," says George Stamboulidis, head of Baker Hostetler's white-collar defense practice. That's important, as an element of the securities fraud, false statement and records falsification charges on which Reyes was convicted requires that the defendant understand that his or her actions were illegal.the government had no overheard conversations or e-mails in which Reyes admitted his involvement in the alleged scheme with former Brocade human resources chief Stephanie Jensen. The pair, prosecutors say, routinely falsified paperwork so that Brocade's finance department would process it without incurring accounting charges required for options grants given at below the market price. businessweek.com
