Options backdating was encouraged by Silicon Valley law firms for a long time because a few million dollars of restated earnings was pretty much off everyone's radar, including the SEC. The bonus for execs was some fairly mega tax nicely evaded at seemingly no consequence. It would seem certain that an insider like Jobs would be well aware of this practice, both its risks and its benefits.

But recently the SEC has started to care.

This SEC investigation is the 1% probability downside that was part of the calculus of this common tax evasion scheme all along. Apple's board (shareholder representatives) were completely OK with everything, and documents (forged or not!) prove that.

The .001% risk is that the SEC will want to turn Jobs into a Ken Lay and will actively seek to destroy him personally in spite of contrary shareholder wishes. This is why he's retained an attorney.

jaggedlittlehelper

deliriousnyc