Gene Levoff, a former Apple lawyer, is suing the United States Securities and Exchange Commission for using his privileged position within the company to commit the crime of insider trading – when someone uses information not yet disclosed to the public to buy or sell shares with the purpose of achieving profit or advantage in the market.
According to the lawsuit, Levoff used the privileged knowledge of his position to manipulate the stock market at least three times between 2015 and 2016. The largest of these infringements occurred in July 2015 when the former Apple lawyer learned that the company would not beat expectations for iPhones sales in the fiscal third quarter, and between July 17 (when the company finalized its fiscal report) and July 21 (when the results were published), Levoff sold the equivalent of $ 10 (almost all company stock it owned), avoiding a loss of about $ 345,000 from the fall that occurred after the quarterly results were released.
Levoff was a repeat offender in this type of infringement and had already engaged in three more times with the insider trading market between 2011 and 2012. In total, the SEC believes that, in the sum of all these transactions, the lawyer profited around US $ 382 thousand.
Since September 2018 Levoff no longer has any employment relationship with Apple, but SEC’s charges against him are rather ironic, since the function of the lawyer within the company was to see to it that Apple executives acted with market responsibility and obeying all the laws that run the financial sector-that is, ensuring that company executives do not do exactly the same thing as it.
The full lawsuit against Levoff can be accessed (in English) through Scribd.