Former Apple attorney charged with insider trading

The attorney formerly in charge of Apple Inc.'s compliance with insider trading laws was charged with insider trading. Gene D. Levoff is alleged to have used "nonpublic information about Apple's financial results" in trades dating back years.

On Wednesday, he was hit with civil and criminal complaints in New Jersey federal court. U.S. Securities and Exchange Commission v. Levoff, 19-CV5536 (D. N.J., filed Feb. 13, 2019); and U.S. v. Levoff, 19-CV3507 (D. N.J., filed Feb. 13, 2019).

He was the company's senior director of corporate law and corporate secretary from 2013 until he was fired in September 2018, two months after the trades came to light through a company-led investigation, according to the complaints.

The California State Bar lists Levoff as inactive since Dec. 5.

The SEC complaint alleges the San Carlos-based lawyer made profits of $245,000 and avoided losses of $382,000 in a series of trades from 2011 to 2016. In the largest transaction, the complaint alleges Levoff avoided losses of $345,000 by selling $10 million in Apple shares just before news came out the company would miss its earnings projections due to slower than expected iPhone sales.

Levoff allegedly profited after buying Apple shares in 2011 ahead of a strong earnings report. He also sent company-wide warnings about a blackout period barring employees from trading the stock "immediately prior to his insider trading," according to the complaint.

The SEC complaint seeks to force "Levoff to disgorge an amount equal to the profits made or losses avoided" on trades within the past five years and "to pay a civil monetary penalty equal to three times his disgorgement." It also seeks to bar Levoff "from serving as an officer or director of a public company."

The criminal complaint for one count of securities fraud was filed by the U.S. attorney's office in New Jersey following an FBI investigation.

Levoff's attorney, Kevin H. Marino, could not be reached for comment. Marino is a principal with Marino, Tortorella & Boyle PC in Chatham, New Jersey.

The securities fraud count carries a possible prison term and a $5 million fine, according to a press release from the U.S. attorney's office.