Apple's ex-CFO blames Jobs for backdated options

SAN JOSE, Calif. — The Securities and Exchange Commission on Tuesday filed civil charges against two former top Apple executives, the first legal fallout from stock-options backdating that has placed a cloud over the company and CEO Steve Jobs since last year.

The action was expected and had been anticipated to largely clear the air for Apple and Jobs. But in response to the charges, the former executives pointed fingers at Jobs and the board, keeping the final outcome of the investigation murky for the time being.

Still, Jobs and Apple's board appear likely to avoid charges.

In a statement, former Apple CFO Fred Anderson placed the blame for the backdating of a particular 2001 grant in part on Jobs. In doing so, Anderson tore into one of Jobs' key defenses — that he didn't know the accounting implications of backdating.

Meanwhile, Nancy Heinen, Apple's former general counsel, pointed fingers at Apple's entire board. Everything that Heinen did related to Apple's options grants was "fully understood and authorized" by the board, Heinen's attorney, Miles Ehrlich, said in a separate statement.

An Apple representative did not immediately return a call seeking comment. Likewise, Mark Pomerantz, Jobs' attorney, did not return inquiries seeking comment.

In complaints filed in federal court in San Jose, the SEC charged Heinen and Anderson with violating securities-fraud laws for their involvement in backdating at the company in 2001, including an instance of backdating their own options.

Anderson simultaneously filed a settlement with the SEC that calls for paying $3.5 million in fines and penalties but does not require him to admit liability, a common feature in SEC action.

Heinen, meanwhile, is expected to vigorously contest the SEC charges, which in part accuse her of breaking securities laws for the backdating of a massive grant to Jobs in 2001 and the falsification of a document to allegedly conceal the backdating.

Heinen's lawyers insist she did not backdate options, had no role in the phony document and followed the instructions of Apple's board in handling Jobs' options.

Still, the SEC complaint pins the blame for the backdating on Heinen and alleges Anderson failed to take steps as CFO to detect her actions.

The case is notable for what it does not include — any legal action against Jobs.

The SEC did say Apple as a company would not face charges, thanks to its "swift, extensive and extraordinary cooperation in the Commission's investigation."

There also appears to be no immediate indications of criminal charges looming.

There has been an ongoing criminal investigation, but prosecutors and the SEC ordinarily coordinate the filing of their cases when criminal charges are brought.