The former top attorney for Apple Inc. in charge of preventing insider trading at the company has been indicted on insider trading charges. According to a Thursday press release from the U.S. attorney for the District of New Jersey, the former director of corporate law at Apple, Gene Levoff, allegedly orchestrated a five-year scheme that used financial results from the company, before they were released to the public, to trade Apple stock. “This scheme to defraud [Apple] and its shareholders allowed Levoff to realize profits of approximately $227,000 on certain trades and to avoid losses of approximately $377,000 on others,” reads the press release.
Levoff allegedly ignored company “blackout periods,” which prohibit employees with access to valuable company information from trading for a set period of time after the company discloses financial results to the public. “Levoff ignored this restriction, as well as the company’s broader Insider Trading Policy—which he was responsible for enforcing—and instead repeatedly executed trades based on material, nonpublic information without [Apple’s] knowledge or authorization,” reads the press release. He is facing six counts of securities fraud and six counts of wire fraud, each carrying a maximum penalty of 20 years in prison.