Judge Rules on SEC Fine
A former senior Apple lawyer, Gene Levoff, has been ordered to pay a $1.15 million fine in a U.S. Securities and Exchange Commission (SEC) civil case related to insider trading. The decision was made by U.S. District Judge William Martini in Newark, New Jersey, on Tuesday.
Background of the Case
Levoff, who was responsible for enforcing Apple’s insider trading policies, was fired in September 2018 after it was discovered that he had engaged in insider trading. He was charged in February 2019 with using nonpublic information about Apple’s earnings announcements to make stock trades.
Previous Sentencing
In June 2022, Levoff pleaded guilty to securities fraud and was sentenced in December to four years of probation, 2,000 hours of community service, and a $604,000 forfeiture. Despite avoiding prison time, Levoff’s actions were deemed especially egregious due to his role at Apple.
SEC Fine and Court Rationale
The $1.15 million fine imposed by the SEC is nearly triple Levoff’s estimated $384,400 profit or avoided losses from six trades. Judge Martini emphasized the severity of Levoff’s violations, noting that despite his stress-induced trading claims, Levoff knowingly engaged in illegal activities.
Levoff’s Defense and Judge’s Response
Levoff argued that the fine was unnecessary, claiming he had already been sufficiently punished and that his actions were a form of self-sabotage. However, Judge Martini pointed out that Levoff, a Stanford University law graduate, was fully aware of the wrongdoing and could afford the fine given his $13 million net worth.
“Regardless of why he was trying to get caught, he acted knowingly and willfully,” Martini wrote in his ruling.
Case Details
The case is titled SEC v. Levoff, U.S. District Court, District of New Jersey, No. 19-05536.
