Former Apple Lawyer Fined $1.15 Million After Insider Trading Conviction

[MacRumors]

Former Apple director of corporate law Gene Levoff has been ordered to pay the U.S. Securities and Exchange Commission $1.15 million for insider trading, reports Reuters. Late last year, Levoff was sentenced to four years of probation and a fine, avoiding a possible two-year jail sentence.

At the time, the fine had not been determined, but the judge presiding over the case handed down a ruling on Tuesday. The judge said that Levoff's violations were "especially egregious" even though he had not been "living excessively."

At Apple, Levoff's role included making sure Apple employees were compliant with the company's insider trading policies, which is why the judge decided that his violation was of particular concern.

Because Levoff was meant to prevent insider trading at Apple, he had access to Apple's earnings results before they were made available to the public. He used the information that he learned to buy Apple shares ahead of better-than-expected results, and to sell shares when there were weaker-than-expected earnings. Levoff's shady stock dealings earned him approximately $277,000, while helping him avoid losses of around $377,000.

In July 2015, for example, Levoff knew Apple would not meet analysts' third quarter estimates for iPhone sales, so he sold $10 million in Apple stock between July 17 and July 21, which is when Apple's earnings information went live. After the announcement, Apple stock dropped more than four precent.

Levoff worked at Apple from 2011 to 2018, but he abused his insider information between 2011 and 2016. Apple fired him in September 2018 after the authorities contacted the company about Levoff's dealings. In June 2022, Levoff pleaded guilty to six counts of securities fraud for insider trading. Federal prosecutors pushed for jail time to deter other corporate executives from insider trading, but the judge did not feel that it was necessary because Levoff was fired and is no longer able to practice law.

Article Link: Former Apple Lawyer Fined $1.15 Million After Insider Trading Conviction

 

[attohs]

$AAPL closed at an all time high today. $220.27

 

[Sai Zelion]

“Fined”

Don’t we all wish we can be FINED for a $1.15 Mil crime?

 

[dannyyankou]

At Apple, Levoff's role included making sure Apple employees were compliant with the company's insider trading policies

How ironic.

 

[CapitalIdea]

Pardon my language, but if his crimes were “especially egregious” his ass should be behind bars.

 

[coffeemilktea]

Levoff's shady stock dealings earned him approximately $277,000

Ironic, as you'd think someone who worked as Director of Corporate Law at Apple would get paid way more than $277,000 per year... he really lost his job over what's probably a relatively small amount of money for him. 🤪

 

[Analog Kid]

Ironic, as you'd think someone who worked as Director of Corporate Law at Apple would get paid way more than $277,000 per year... he really lost his job over what's probably a relatively small amount of money for him. 🤪

What's ironic is that he did this to avoid a loss in 2015

 

[surfzen21]

His job title was, "Do as I say, not as I do!"

 

[GeoStructural]

Pardon my language, but if his crimes were “especially egregious” his ass should be behind bars.

This type of crime often gets met with a slap on the wrist. Too many high profile people engage in these.

 

[JapanApple]

I am happy I making money with Apple's all-time high

$AAPL closed at an all time high today. $220.27

I am one of those who own Apple shares.
Laugh all you want. 💵💸💰

 

[california_kid]

Come one, this wouldn't be the first time somebody was hired to prevent employees from doing bad things and then gets caught themselves of doing those bad things. Many of them are state and federally elected officials!

I mean if I was hired to keep an eye on a table full of pies, I can promise you that the peach pie would have mysterious bites taken out of it. The rhubarb one, not so much.

 

[tennisproha]

Pardon my language, but if his crimes were “especially egregious” his ass should be behind bars.

He's not because insider trading is rampant among high profile individuals and also an open secret.

 

[CapitalIdea]

This type of crime often gets met with a slap on the wrist. Too many high profile people engage in these.

Oh I know. I just don’t want to hear the BS statement from the judge while he delivers said slap on the wrist.

 

[nateo200]

What's ironic is that he did this to avoid a loss in 2015

View attachment 2394001

OOF

 

[ellpee]

I am happy I making money with Apple's all-time high

I am one of those who own Apple shares.
Laugh all you want. 💵💸💰

The overall stock market is at an “all-time high.” Be careful, Apple isn’t fighting against App Store competition for nothing.

 

[JapanApple]

The overall stock market is at an “all-time high.” Be careful, Apple isn’t fighting against App Store competition for nothing.

For the sake of humor, Stock has been held for years so there are no worries.

 

[bushman4]

Lock him Up !!!!

 

[TheNewLou]

“Fined”

Don’t we all wish we can be FINED for a $1.15 Mil crime?

What would happen if he robbed a bank of $277,000? /rhetorical question

Why does the law treat him differently? /also rhetorical question

 

[tennisproha]

What would happen if he robbed a bank of $277,000? /rhetorical question

Why does the law treat him differently? /also rhetorical question

It’s actually the opposite.

This is a white collar crime, not blue collar like robbing a bank. This type of crime never gets jail time because insider trading happens daily.

Only difference is he actually got caught so the fine is to keep up appearances of holding wealthy execs accountable.

 

[Stenik]

“Fined”

Don’t we all wish we can be FINED for a $1.15 Mil crime?

This is not a real "crime".

 

[Stenik]

What would happen if he robbed a bank of $277,000? /rhetorical question

Why does the law treat him differently? /also rhetorical question

The comparison between "insider trading" and robbing a bank is inapposite.

 

[Stenik]

Ironic, as you'd think someone who worked as Director of Corporate Law at Apple would get paid way more than $277,000 per year... he really lost his job over what's probably a relatively small amount of money for him. 🤪

Apple pays its employees peanuts. That is why they have no other choice but to resort to other ways of earning money.

 

[iPay]

Ironic, as you'd think someone who worked as Director of Corporate Law at Apple would get paid way more than $277,000 per year... he really lost his job over what's probably a relatively small amount of money for him. 🤪

Never let the junkie guard the stash! (from Fabulous Freak Brothers iirc)

 

[iPay]

This type of crime often gets met with a slap on the wrist. Too many high profile people engage in these.

True. Similar cases in France:
- Airbus A380 delays, 2005-2006: all board members massively sold shares prior to announcing big delays, except for the CFO who was busy elsewhere. Prosecution (FR and DE govt) dropped the case in 2015: no trial, no fine, business as usual.
- Minister for public accounts (in charge of fighting tax evasion), 2012-2013: While in office, found guilty of tax evasion. Convicted in court, did time.

 

[iPay]

He's not because insider trading is rampant among high profile individuals and also an open secret.

[... should be behind bars]

Depends on national laws. In the US, traders are cautious with insider trading since it can lead to jail. Same for executives and stock manipulation with misleading claims (Hey Elon!).