Former Apple director sued after profiting from inside information

Former Apple director sued after profiting from inside information

If Apple had a list with the names of the people who betrayed the company, surely the name of Gene Levoff would be scrawled in the last lines. That’s because Apple’s attorney and former vice president of corporate law was accused of insider trading according to a process opened by US Securities and Exchange Commission.

The SEC claimed that Levoff had access to Apple’s financial results before they were publicly released and that he used that information to buy / sell Apple shares before the company’s physical data appreciated (or devalued) its shares between 2015 and 2016 Ironically, this was the same situation that the lawyer was tasked with avoiding while working at Apple.

This was not the first time that the former executive took the unfair action of benefiting from privileged information from Apple; according to the SEC, Levoff would have negotiated non-public information about the company at least three other times between 2011 and 2012, when he won about $ 245k. In the most recent case, the former VP avoided losses of approximately $ 382k, as informed by CNBC.

Levoff’s name is also mentioned in documents of transactions – let’s say – suspicious of Apple. In that sense, he told American lawmakers (who were investigating startups acquired silently by the company in Europe) that participated in several Apple merger and acquisition processes that are outside the company’s official roles. The executive was fired from the company last July and his contract ended in September.

For the use of privileged information for its own benefit, the SEC demanded that Levoff pay a fine corresponding to the profits obtained and losses avoided by this action, and filed a ban that prevents him from serving as an officer or director of any public company. In a statement to the CNBC, Levoff’s lawyer, Kevin Marino, said he is «reviewing the civil and criminal allegations against Mr. Levoff and that he hopes to defend him on both matters.»

Apple, on the other hand, explained in a statement that after being contacted by the authorities in the middle of last year, it conducted a full investigation with the help of outside agents, which resulted in Levoff’s dismissal. The former executive is due to appear in the New Jersey District Court on the 20th.

via 9to5Mac