Former Apple Lawyer Facing Criminal Charges for Insider Trading

[MacRumors]

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."

Article Link: Former Apple Lawyer Facing Criminal Charges for Insider Trading

 

[Elyzien]

Took a bit of the Apple... found a worm inside!

 

[thisisnotmyname]

well that's ironic

 

[Slash787]

He fought the Law, but the Law won.

 

[SecuritySteve]

I'm sure this has nothing to do with the reason why he was fired. Totally unrelated.

 

[Mr. Dee]

The irony here is just too much to comprehend. Basically a fox in the hen house.

 

[mikethemartian]

Who watches the watchers?

 

[turbineseaplane]

What horrendous decision making.

Having any amount of Apple stock in quantity should’ve just been an enjoyable ride…
Insider trading on it for the micro movements around earnings is just moronically stupid

 

[Mike MA]

Money helps to unveil your true charakter.

 

[JediKnightDub]

I wish I could add the Palpatine Ironic GIF.

 

[DEMinSoCAL]

A lawyer for Apple and he doesn't have enough money already to just let his investments ride out the tough times? Look at Apple Stock now had it just left it alone...

 

[citysnaps]

Who watches the watchers?

Apparently someone or some algorithm. He got caught.

 

[az431]

I'm sure this has nothing to do with the reason why he was fired. Totally unrelated.

Did you read the article?

 

[Baymowe335]

Glad he’s gone.

 

[roguedaemon]

I always wonder what goes through these peoples heads lol
*monkey cymbal sounds*

 

[konqerror]

I always wonder what goes through these peoples heads lol
*monkey cymbal sounds*

When you know exactly how the system works, you know exactly how to sneak under it... this is why he got away with it for so long.

Often people only get caught when things change, like a new person comes in and checks the books in a different way or new regulations come about.

 

[testcard]

Where’s an irony emoji when you need one?

 

[DaveP]

Interesting that it apparently took 8 years to catch up with him.

 

[turbineseaplane]

Interesting that it apparently took 8 years to catch up with him.

Speaking of “years”...

 

[Chrjy]

He was probably earning a princely sum too based on his position in the organisation. There's just no stopping some people's greed.

 

[now i see it]

It's not uncommon for law enforcement to allow an identified perp to commit a more crimes while they patiently log & record every crime committed until the list is big enough to bury the perp for good

 

[mtneer]

I am surprised he was fired and not allowed to “retire to spend more time with the family” as it’s more common in corporate America.

 

[Baymowe335]

He should have just held all the stock.

 

[turbineseaplane]

There is no amount of money that is ever enough for some people.
It’s really pretty sad

 

[oneMadRssn]

This isn't monumentally stupid because of the quantity - it's stupid because of his position and how easy it is to catch exactly this kind of insider trading. If he was trading a single share, he still would have been caught.

I've heard of some sophisticated schemes to hide insider trading. You can instead trade in ETFs that hold said stock in a relatively high percentage, never using the same ETF twice. You can hide behind a spaghetti of shell corporations. You could anonymously sell the insider information. This guy did none of that.