Last February, we commented on a case that drew media attention: Apple’s attorney and former vice president of corporate law, Gene Levoff, was accused of insider trading. In a clear betrayal against the Apple, Levoff was prosecuted and now indicted for benefiting from restricted information Cupertino giant in its private business. The information is CNBC.
More precisely, Levoff used such information, including the company’s financial results before they were publicly released, to sell company shares during trading periods. “Blackout” (when no company employee can buy or sell their papers), as well as to buy them during the best fiscal quarters. Besides insider trading, Levoff also faces six counts of fraud.
This fraud scheme allowed Levoff to make a profit of approximately $ 227,000 in certain transactions and to avoid losses of approximately $ 377,000 in others.
As we said, the United States Securities and Exchange Commission (Securities and Exchange Commission, or SEC) officially accused Levoff in February; according to American justice, the crime of insider trading can lead to a maximum sentence of 20 years in prison, in addition to fines.
Levoff was one of Apple’s top lawyers; he joined the company in 2008 and was senior director of corporate law from 2013 to 2018, with the aforementioned illegal transactions taking place in 2011 and 2016. The most ironic of all is that Levoff’s role as Apple’s lawyer was precisely to prevent that employees perform insider trading (maybe that’s why he thought he was going to get away with it).
Apple did not comment on the outcome of the case; in February, the company said it denounced Levoff after being contacted by the authorities, which resulted in an internal investigation and the termination of the executive’s contract.