Apple's Jobs to be questioned by SEC

SAN FRANCISCO -- Apple Chief Executive Officer Steve Jobs was subpoenaed by the U.S. Securities and Exchange Commission to give a deposition in a backdating lawsuit against the company's former general counsel, two people familiar with the matter said.

The subpoena isn't part of an SEC investigation, one of the people said. It seeks Jobs' testimony in the SEC's lawsuit against Nancy Heinen, accused of allegedly backdating stock-option grants to Jobs and members of his executive team, said the people, who requested anonymity because deposition subpoenas aren't made public.

Jobs, 52, probably will be questioned about his role in granting options, and both sides can use his answers at a trial, said former SEC lawyer Jahan Raissi. Heinen's attorneys can cross-examine Jobs during the SEC deposition.

"Perhaps some aspect of what they are hoping to prove and show is that others in the company were approving and aware of the options," said Raissi, now a white-collar defense attorney at Shartsis Friese in San Francisco. "The format of a deposition is designed to mimic the format of a witness testifying in court."

Jobs recommended some favorable dates on options other than his own, Apple said Dec. 29.

SEC subpoenas were issued Aug. 16 and depositions were scheduled to being Nov. 7, according to a court filing in Heinen's case. Heinen was sued April 24 in San Jose, Calif., and accused of backdating a 7.5 million-share option grant to Jobs in 2001 and earlier grants to his executive team.

The suit also named Fred Anderson, Apple's former chief financial officer, who settled the SEC claims. The suit didn't name Jobs as a defendant.

Steve Dowling, an Apple spokesman, declined to comment. Mark Pomerantz, an attorney for Jobs, didn't reply to a message. Marc Fagel, an SEC attorney in San Francisco, declined to comment.

In its lawsuit, the SEC claims Heinen told her staff to prepare documents that falsely said the company's board approved the grants on the earlier date. She has denied the claims. Miles Ehrlich, Heinen's lawyer, declined to comment.

Stock options allow holders to buy shares later, usually at the trading price on the day the options were granted. Through backdating, companies retroactively change grant dates to those with lower stock prices, giving recipients built-in profits. Unless disclosed and recorded as expenses, the practice is illegal because it hides costs from shareholders and regulators.