Home / Apple / Former Senior Appeal Attorney charged with insider trading

Former Senior Appeal Attorney charged with insider trading

SAN FRANCISCO – A former senior lawyer at Apple who oversaw the company's insider trading policies was even charged with insider dealing in a federal lawsuit that was announced on Wednesday.

The Securities and Exchange Commission said in a suit like Gene Levoff, former former corporate law director and a corporate secretary at Apple, acted repeatedly on inside information from 2011 to 2016.

SEC said Mr. Levoff's violation of insider trading laws three times from 2015 to 2016. On one occasion, Mr. Levoff sold about $ 10 million of the Apple stock – almost his entire stock ̵

1; from his personal broker account four days before Apple announced quarterly earnings on July 21, 2015.

The company's share price fell 4 percent after the earnings report, where Apple revealed that it had broken out of analysts' estimates for iPhone sales.

Mr. Levoff had already seen a draft of the announcement and avoided about $ 345,000 in losses by dumping his Apple shares before the official announcement, S.E.C. so. But since the end of 2016, Apple's share price has increased by 47 percent.

Kevin Marino, lawyer Mr. Levoff and a principal of the law firm Marino, Tortorella & Boyle, refused to comment on the charges because he said he had not received the complaint.

According to the secretary, Mr. Levoff supervised Apple's corporate group from 20 to 30 lawyers and lawyers. He was responsible for Apple's compliance with the Securities Act and provides legal advice to the company's S.E.C. filing and financial reporting. He also served as a corporate officer in all major Apple subsidiaries.

"As a member of the core group of senior Apple insiders entrusted with non-public information and as a lawyer with a sophisticated understanding of securities and corporate law, Levoff knew or was ruthless by not knowing that he had confidence and trust to the company and its shareholders, "according to the complaint filed in the United States District Court for the District of New Jersey.

SEC said he was on leave in July and kicked in September, but did not say why he had lost his job. An Apple spokeswoman did not respond to a comment request.

In an indication of where senior Mr. Levoff was with the company, he was part of Apple's Information Committee – a group that helps Tim Cook, Apple's CEO and Luca Maestri, CFO, decide whether the company meets its responsibilities to provide accurate and timely information to investors.

At the time of departure, Mr. Levoff reported to Katherine Adams, Apple's Secretary General. She replaced Bruce Sewell, who served as the company's top lawyer for eight years until he declined in 2017.

Mr. Levoff was responsible for ensuring compliance with Apple's insider trading rules, including sending emails to individuals subject to trade restrictions around Apple's quarterly revenue. Apple's insider trading policy said that any person with material, non-public information about the company, was not allowed to trade the shares for 60 hours after the information was announced.

S.E.C. said Mr. Levoff also engaged in insider trading on three other occasions in 2011 and 2012. In each case, Mr. Levoff received draft press releases and S.E.C. registrations. He then bought thousands of shares in the Apple stock before public announcement. Shortly after the stock rose on the positive earnings announcements, Mr. Levoff sold the shares. He made about $ 245,000 in profits on these insider trading.

Prior to these transactions, Mr. Levoff sent e-mails to corporate employees, notifying them that a blackout period had begun and that they were banned from trading Apple securities.

Source link