Key Points:
- Gene Levoff, a former senior Apple lawyer, was fined $1.15 million by U.S. District Judge William Martini for insider trading.
- Levoff’s actions were deemed especially egregious given his role in enforcing insider trading policies at Apple.
- Levoff had previously been sentenced to four years of probation, 2,000 hours of community service, and a $604,000 forfeiture.
- Judge Martini noted that Levoff knew his actions were wrong and could handle the fine given his $13 million net worth.
Gene Levoff, a former senior lawyer at Apple Inc. (AAPL.O), 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. U.S. District Judge William Martini issued this ruling on Tuesday in Newark, New Jersey.
Judge Martini highlighted the severity of Levoff’s actions, noting that despite not living extravagantly, Levoff’s violations were particularly egregious due to his former role in enforcing Apple’s insider trading policies. Levoff served as the senior director of corporate law at Apple until his dismissal in September 2018.
The charges against Levoff were brought five months after his firing. They accused him of making stock trades based on nonpublic information about Apple’s earnings announcements. In June 2022, Levoff pleaded guilty to securities fraud. By December, Judge Martini had sentenced him to four years of probation, 2,000 hours of community service, and $604,000 in forfeiture.
The SEC’s proposed fine was calculated to be triple the estimated $384,400 profit or avoided losses from six trades that Levoff made using insider information. In his defense, Levoff argued that the fine was unnecessary, claiming he had already faced significant punishment and labeling his trading activities as “self-sabotage” due to stress.
However, Judge Martini refuted these arguments, emphasizing that Levoff, a Stanford University law school graduate, was fully aware of the illegality of his actions. The judge pointed out that Levoff’s substantial net worth of approximately $13 million made him capable of paying the fine. “Regardless of why he was trying to get caught, he acted knowingly and willfully,” Judge Martini wrote in his decision.
Kevin Marino, Levoff’s attorney, expressed disappointment with the ruling but acknowledged Judge Martini’s fairness throughout the case. Marino stated, “We are of course disappointed, but Judge Martini has been fair and even-handed throughout this case, and we respect his decision. Mr. Levoff is pleased to put this matter behind him and move on with his life.” The case is officially known as SEC v. Levoff, U.S. District Court, District of New Jersey, No. 19-05536.
