WASHINGTON DC - The U.S. Securities and Exchange Commission has filed insider trading charges against a former senior attorney at Apple whose duties included executing the company's insider trading compliance efforts.
The SEC's complaint alleges that Gene Levoff, an attorney who previously served as Apple's global head of corporate law and corporate secretary, received confidential information about Apple's quarterly earnings announcements in his role on a committee of senior executives who reviewed the company's draft earnings materials prior to their public dissemination.
Using this confidential information, Levoff allegedly traded Apple securities ahead of three quarterly earnings announcements in 2015 and 2016 and made approximately $382,000 in combined profits and losses avoided.
The SEC's complaint alleges that Levoff was responsible for securities laws compliance at Apple, including compliance with insider trading laws. As part of his responsibilities, Levoff reviewed and approved the company's insider trading policy and notified employees of their obligations under the insider trading policy around quarterly earnings announcements.
"Levoff's alleged exploitation of his access to Apple's financial information was particularly egregious given his responsibility for implementing the company's insider trading compliance policy," Antonia Chion, Associate Director of the SEC's Division of Enforcement said Thursday. "The SEC is committed to pursuing insiders who breach their duties to investors."
The SEC's complaint, filed in federal district court in Newark, New Jersey, charges Levoff with fraud and is seeking the return of his ill-gotten trading profits plus interest, penalties, a permanent injunction, and an officer-and-director bar.
In a parallel action, the U.S. Attorney's Office for the District of New Jersey this week announced criminal charges.