Is The Case Against Apple Falling Apart?
Could be an indicator the case against Apple is not as strong as people worry...
Quote:
January 21, 2007
Prosecutor in Apple Case Joins Law Firm
By BLOOMBERG NEWS
Christopher J. Steskal, a lead prosecutor of a federal task force investigating the backdating of stock options at Apple Inc. and other companies, is leaving his San Francisco post to join a law firm, the United State Attorney?s office in San Francisco confirmed late Friday.
Mr. Steskal?s decision follows the recent resignation of his boss, United States Attorney Kevin V. Ryan.
Mr. Steskal also was the lead prosecutor in the government?s case against Gregory L. Reyes, the former chief executive of Brocade Communications Systems.
Mr. Steskal, who was to try Mr. Reyes?s case in June in San Francisco, is the second of five assistant United States attorneys on the task force to leave since its formation in July. He said he would join the San Francisco office of Fenwick & West within 30 days.
William J. Portanova, a criminal defense attorney and former federal prosecutor, said that he believed that the Brocade case would not suffer, no matter who is picked to succeed Mr. Steskal.
?The government has people stacked up ready to pick up the case and run with it,? he said.
Luke Macaulay, a spokesman for the United States Attorney?s office in San Francisco, said that one of two prosecutors the office is planning to hire would replace Mr. Steskal on the task force.
January 21, 2007
Prosecutor in Apple Case Joins Law Firm
By BLOOMBERG NEWS
Christopher J. Steskal, a lead prosecutor of a federal task force investigating the backdating of stock options at Apple Inc. and other companies, is leaving his San Francisco post to join a law firm, the United State Attorney?s office in San Francisco confirmed late Friday.
Mr. Steskal?s decision follows the recent resignation of his boss, United States Attorney Kevin V. Ryan.
Mr. Steskal also was the lead prosecutor in the government?s case against Gregory L. Reyes, the former chief executive of Brocade Communications Systems.
Mr. Steskal, who was to try Mr. Reyes?s case in June in San Francisco, is the second of five assistant United States attorneys on the task force to leave since its formation in July. He said he would join the San Francisco office of Fenwick & West within 30 days.
William J. Portanova, a criminal defense attorney and former federal prosecutor, said that he believed that the Brocade case would not suffer, no matter who is picked to succeed Mr. Steskal.
?The government has people stacked up ready to pick up the case and run with it,? he said.
Luke Macaulay, a spokesman for the United States Attorney?s office in San Francisco, said that one of two prosecutors the office is planning to hire would replace Mr. Steskal on the task force.
Comments
Backdating itself isn't even illegal. The potential illegality comes if taxes were intentionally evaded or there was intentional defrauding of shareholders. Beyond that backdating as a policy is between the company and its shareholders.
It seems Apple has preemptively made it exceedingly difficult to prove that there were intentional attempts to defraud anyone by the company itself, or current officers.
Many of the other backdating cases where companies were not so forthright have vaporized because it became obvious the problems were ignorance, not criminal fraud. Ignorance is rectified with civil penalties, making companies hire better accountants to not get fined next time.