The Securities and Exchange Commission has brought suit against Gene Daniel Levoff, who was Apple’s senior director of corporate law until September 2018. Levoff is accused of using his position to make illegal trades of Apple shares.
Levoff was part of Apple’s Disclosure Committee—one of the people who could review the company’s quarterly financial reports ahead of their publication. The SEC maintains that he used nonpublic information obtained as part of the committee to inform trades he made of Apple shares. For example, in July 2015 he learned that Apple was going to miss analyst estimates for iPhone unit sales. Between July 17 and July 21, when Apple published its quarterly earnings report, he sold nearly his entire holding of Apple stock, totaling nearly $10 million. When the news became public, Apple’s share price dropped by more than 4 percent—selling early avoided losses of approximately $345,000.
The SEC alleges that, between 2011 and 2012, Levoff reportedly made $245,000 in profit and, in 2015 and 2016, avoided losses totaling $382,000.