Former Apple exec accused of insider trading goes free on $500K bond

Posted:
in AAPL Investors
Apple's former senior director of corporate law, Gene Levoff, has been temporarily released on a $500,000 bail bond while he awaits trial for insider trading.

Image Credit: Victor J. Blue/Bloomberg
Image Credit: Victor J. Blue/Bloomberg


The bond was imposed by a federal court in New Jersey due to flight risk, Bloomberg indicated. U.S. Magistrate Judge Steven Mannion remarked that Levoff has traveled considerably in the past, and has "extensive assets" that could help him flee.

The U.S. Securities and Exchange Commission filed charges against Levoff last week, saying that he "traded on material nonpublic information about Apple's earnings" three times between 2015 and 2016, and another three times in 2011 and 2012. The 2015 and 2016 incidents alone were supposedly worth $382,000.

Levoff took advantage of unreleased quarterly data as well as internal updates on iPhone sales, the SEC argued, even violating the company's own "blackout" windows for stock transactions. While at Apple, he was responsible for compliance with SEC regulations.

A spokesperson told AppleInsider that Levoff was forced to go on leave in July 2018 after the company was informed of the accusations. It then conducted a "thorough investigation with the help of outside legal experts," leading to his firing in September.

The executive's history with Apple includes helping to establish Apple Vietnam in 2015. At the time, he was also the director of Apple Operations International.

Comments

  • Reply 1 of 7
    MacProMacPro Posts: 18,254member
    He can afford that ... for now.
  • Reply 2 of 7
    He looks like he can afford that bond, he also look like he could rock that orange jumpsuit.
    wonkothesanekuducornchip
  • Reply 3 of 7
    Has the DOJ filed criminal charges that weren't reported on? Or did I miss such reporting?

    Because the SEC can't bring criminal charges and Mr. Levoff wouldn't have been in jail (or under threat of jail) in connection with the charges that the SEC brought.


    EDIT: Yes. The DOJ brought criminal charges the same day that the SEC brought civil charges. I hadn't seen that reported anywhere.
    edited February 21 PickUrPoison
  • Reply 4 of 7
    If the bond is 500K, how much is the actual bail?
    cornchip
  • Reply 5 of 7
    arlorarlor Posts: 498member
    If the bond is 500K, how much is the actual bail?
    In California, bond is almost always 10% of bail, so the bail should be $5 million. The $500k is a deadweight loss to Levoff, but it spares him putting up $5 million, though he probably will have had to put up collateral too. 
    cornchip
  • Reply 6 of 7
    arlor said:
    If the bond is 500K, how much is the actual bail?
    In California, bond is almost always 10% of bail, so the bail should be $5 million. The $500k is a deadweight loss to Levoff, but it spares him putting up $5 million, though he probably will have had to put up collateral too. 
    That's what I thought too (the 10% figure seems fairly common).  He's legally on the hook for the entire 5 million though, if he jumps.  And the court can at least try to seize assets if he does, even if he later presents himself again.
  • Reply 7 of 7
    cornchipcornchip Posts: 1,313member
    Sheesh. Bad move, buddy.
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