Former Apple Lawyer Facing Criminal Charges for Insider Trading
Former Apple lawyer Gene Levoff, who was in charge of enforcing Apple's Insider Trading Policy, is facing criminal charges related to insider trading of Apple stock, reports CNBC.
Levoff was today indicted for insider trading, and he is facing six counts of security fraud and six counts of wire fraud. According to the U.S. government, Levoff used inside information from Apple, including financial results before they were published, to sell Apple stock ahead of weaker than expected earnings results between 2011 and 2016 as well as to purchase stock during stronger quarters.
This scheme to defraud Company-1 and its shareholders allowed Levoff to realize profits of approximately $227,000 on certain trades and to avoid losses of approximately $377,000 on others.
When Levoff discovered that Company-1 had posted strong revenue and net profit for a given financial quarter, he purchased large quantities of stock, which he later sold for a profit once the market reacted to the news.
The United States Securities and Exchange Commission first filed charges against Gene Levoff in February, but now he is facing criminal charges in addition to civil charges.
Levoff worked for Apple from 2008 to 2018, and prior to when he was fired from the company, he was the senior director of corporate law.
Apple declined to comment on the criminal charges filed today, but in February, said the following: "After being contacted by authorities last summer we conducted a thorough investigation with the help of outside legal experts, which resulted in termination."