Apple Inc (AAPL)

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08:10 AAPL Federal prosecutors have begun to investigate Apple's options practices - WSJ (75.38 )

WSJ reports Steve Jobs knew that Apple Computer manipulated some of its stock-option grants, the co said, citing the conclusions of an internal probe that found 15 instances of improperly backdated options and raised "serious concerns" about the conduct of two former Apple execs.

Federal prosecutors in San Francisco have begun to investigate Apple's options practices, and Apple-appointed lawyers met with prosecutors and securities regulators Tuesday, a person familiar with the matter said. Kevin Ryan, the U.S. attorney for the Northern District of California, has made the stock-options manipulation investigations a top priority of his office, which created a stock-options task force in July.