Backdating charges

Last week a whole new set of claims made by the Department of Justice last October were unsealed in a California court.

They allege that Nicholas took and supplied drugs, including ecstasy, cocaine and methamphetamine, commonly called crystal meth.

An SEC investigation into options backdating at Ontario, Canada-based Research In Motion (RIM) has concluded with the company and four of its executives entering into two separate settlements with American and Canadian regulators.

These service charges date back to 1997, therefore is there any rule which says they could be time barred as they are so old?

In one incident recounted in the indictment Nicholas is alleged to have smoked so much marijuana on a private plane flight to Las Vegas that the smoke and fumes reached the cockpit, where the pilot is alleged to have had to use his oxygen mask.

Forbes last year estimated Nicholas's wealth at .3 billion.

If the company's share price rises, owners of options can keep the difference and if it falls they are not obliged to exercise the options by buying the shares.

Backdating involves changing the date of option issue after the fact to a date when the share price was lower, thus increasing the profit enjoyed by the option holder.


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