The Securities and Exchange Commission of the United States of America charged a former Apple Lawyer for insider trading. The high ranked former lawyer for Apple sold his stocks before the earning announcement using the insider information for his profits. According to the SEC lawsuit, Gene Levoff, who was the corporate secretary for the company used the insider sources to know about the Earnings reports and sold the stocks to avoid the losses or earn the profit. The amount estimated is said to be $382,000.
In July 2015, Gene Levoff sold the stocks of Apple Inc worth $10 million before the earnings revenue. After the same earning revenues presentation, the company stock soared down to 4% than the start of the day. Gene Levoff made somewhere around $342,000 in that transaction. The said Apple Lawyer was working on the position of Corporate Secretary and had the job of complying with the securities law and providing the legal consultation for the SEC filings of the company. Also, he was responsible for Apple’s Corporate Subsidiary Structure. Surprisingly, the SEC has not charged Apple for insider trading as their former employee has been caught doing insider trading.
Gene Levoff has access to the Earning and Revenue report before everyone else, and he managed the Corporate and Financial filings with the SEC. According to the SEC, Levoff broke the blackout period clauses in the Companies Rulebook, which he wrote himself. The United States Attorney for New Jersey filed the criminal charges against Gene Levoff. The U.S. attorney said that Mr. Gene Levoff made the trading transactions through TD Ameritrade and First Republic brokerage accounts, but they were executed in the New Jersey state by Virtu Americas and BNY Capital Markets brokers. If the charges are confirmed on Gene Levoff, he could face no less than 20 years in Prison and $5 million in penalties for insider trading.