I thought his comment was telling: “When I sign a document and it has a date thing there? I didn’t even go to law school, and I figured out that that’s probably the most appropriate thing.” By the way, even in the unlikely event that someone backdates options and accounts for them properly–i.e., treats them as in-the-money options–he would still almost always be violating the terms of the stock option plan which has been approved by shareholders.Those plans almost always require that the options be granted at fair market value on the date of the grant.A dealership might choose to backdate a contract for convenience, or because the lender’s acceptance of the deal was based on the original sale date, but more often than not it is because the dealer has found a way to make more money and needs to rewrite the contract so that they can pocket the extra profit.Regardless of the reason, backdating a contract is illegal.Our firm accepts all auto fraud cases on contingency, and can help you to cancel your fraudulent deal.If a dealership is willing to knowingly backdate your contract illegally, why wouldn’t they try to scam you out of money in other ways as well?Using any date other than the physical date that the new contract is signed on violates several consumer protection laws and quite often will entitle the buyer to either monetary damages or a full recession of their contract including a refund of all monies paid to the dealer.
Last October I interviewed Scott Mc Nealy, CEO of Sun Microsystems (SUNW), for a different story, and I brought up the subject of options backdating.
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Whenever I write about backdating, many people write in to tell me that backdating’s not illegal; you just have to account for it correctly.
The best backdating reason is convince buyers that the new auto contract will be better for them in the long run. We recommend never to sign a backdating contract with the incorrect date on it, not matter what.
In general, backdating contracts is illegal, and the law doesn’t leave much grey area on the topic.