NEWARK (CelebrityAccess) — The former corporate secretary and director of corporate law at Apple has been charged with insider trading.
According to Federal prosecutors, Gene Levoff, 45, of San Carlos, California, was indicted on six counts of securities fraud and six counts of wire fraud. Levoff was initially charged with one count of securities fraud by complaint in February 2019.
Between 2011 and 2016, Levoff, who was the top corporate lawyer at Apple and a member of the company’s disclosure committee, was alleged to have used nonpublic information about Apple’s financial results to make trades involving the company’s stock.
“When Levoff discovered that [Apple] 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. When he learned that [Apple] had posted lower-than-anticipated revenue and net profit, he sold large quantities of [Apple] stock, avoiding significant losses,” a statement from Federal prosecutors said.
Prosecutors alleged that the trades allowed Levoff to realize profits of approximately $227,000 and to avoid losses of approximately $377,000.
As the senior corporate attorney for Apple, Levoff was tasked, among other things, with ensuring that its officers and principals complied with insider trading regulations.
“Levoff’s responsibilities included ensuring compliance with Company-1′s Insider Trading Policy,” the indictment said.
If Levoff is convicted of securities fraud, the charges carry a potential penalty of 20 years in prison and a $5 million fine each. The wire fraud counts carry a maximum penalty of 20 years and a fine of the greater of $250,000 or twice the gain derived from or loss caused by the offense.
As well, the U.S. Securities and Exchange Commission (SEC) has also filed a civil complaint against Levoff based on the same allegations.