Apple Under Fire For Alleged Forged Documents

Federal investigators are reviewing Apple stock option documents that may have been falsified by company officials. Reports state that the investigation puts Apple at risk for possible criminal prosecution. (Source: cnn.com)

The allegedly falsified documents were uncovered during an earlier investigation on Apple CEO Steve Jobs. Although Jobs was cleared of any wrong-doing over stock options, the investigation uncovered additional problems.

Quinn Emanuel Urquhart Oliver & Hedges, the company that conducted the internal probe on Jobs, said that "the investigation raised serious concerns regarding the actions of two former officers in connection with the accounting, recording and reporting of stock option grants." (Source: theinquirer.net)

Although no names have been released, those with close knowledge of the case suspect that Nancy Heinen, Apple's former General Counsel, and Fred Anderson, former Chief Financial Officer, ware the two ex-officers referred to in reports. (Source: law.com)

Attorney Keith Krakaur weighed in on the gravity that such an investigation may have. "When there are falsified documents, the government views them as an intent to defraud, because people generally don't falsify documents unless they're trying to make things different from reality," he said. (Source: cnn.com)

Analysts, on the other hand, do not believe that the impact of the investigation will have a dire effect on Apple's business. However, that isn't to say that they are not concerned. Analysts warn that if the investigation leads to the departure of Jobs, the consequences could be huge.

In fact, many analysts report that Apple's stock plunge is a product of the possibility of losing Jobs, not a reaction to the investigation itself.

"If Apple had to get rid of Steve Jobs because of this, it would have material implications for the company," said Enderle Group analyst Rob Enderle. "A lot of executives had to leave their posts over this and the market is anticipating that kind of problem. That's where the concern is." (Source: mercurynews.com)

Jobs has decided to seek separate counsel from Apple and has hired his own attorney. It is still unknown if the investigation will lead to criminal charges and/or civil SEC inquiries. (Source: cnn.com)