The Securities and Exchange Commission on Wednesday filed a lawsuit against a former high-ranking Apple Inc. employee who allegedly used inside information to trade the stock ahead of earnings announcements.
According to the SEC, Gene Levoff on three occasions used his position as corporate secretary to either profit, or avoid losses, of $382,000.
In one case, Levoff sold some $10 million worth of Apple AAPL, -0.05% stock before earnings that came out on July 21, 2015, saving some $345,000 ahead of news that resulted in a 4% loss in Apple’s stock.
Levoff was responsible for Apple’s compliance with securities laws, including providing legal advice in connection with Apple’s SEC filings and financial reporting, and for managing Apple’s corporate subsidiary structure, the agency said.
The case doesn’t charge Apple and in fact notes the company’s anti-insider trading policies, which included notifications of blackout periods when employees aren’t allowed to trade. Levoff, according to the SEC, even wrote some of those policies.
According to the SEC, Levoff was terminated in September.
Levoff’s attorney declined to comment. Apple did n
Apple Inc. shares were trading at $170.86 per share on Wednesday afternoon, down $0.03 (-0.02%). Year-to-date, AAPL has gained 8.78%, versus a 10.01% rise in the benchmark S&P 500 index during the same period.
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