Former Apple securities lawyer pleads guilty to insider trading charges

Posted:
in General Discussion
Gene Levoff, former senior director of corporate law for Apple, has pleaded guilty to six counts of security fraud -- the same type of fraud he was hired to prevent.

Gene Levoff
Gene Levoff


In 2019, Levoff was accused of arranging and executing a five-year insider trading scheme, where he allegedly used internal financial information to perform trades before they were publicly reported.

In 2020, he fought against the inditement, citing that the prosecution was unconstitutional. The court struck down the motion.

Now, Levoff has pleaded guilty to six counts of securities fraud, according to the Department of Justice, as spotted by The Verge.

Levoff was meant to be in charge of enforcing a blackout period that would prevent people with such knowledge from buying or selling stock ahead of disclosure, but instead, he allegedly benefited by securing profits worth approximately $227,000 and avoided losses of $377,000.

Levoff's sentencing is scheduled for November 10. He could face a maximum penalty of up to 120 years in prison and up to $30 million in fines.

Read on AppleInsider

Comments

  • Reply 1 of 13
    Jesus, 120 years for securities fraud? A repeat offender who just killed 4 people, a felony weapons possession charge, narcotics with intent to sell and a stolen vehicle would only get 12. AND still be able to vote when he got out! Marty, set the clock to 1975 Detroit! 
    jdwravnorodomwatto_cobrabyronl
  • Reply 2 of 13
    22july201322july2013 Posts: 2,990member
    Levoff was meant to be in charge of enforcing a blackout period that would prevent people with such knowledge from buying or selling stock ahead of disclosure, but instead, he allegedly benefited by securing profits worth approximately $227,000 and avoided losses of $377,000.
    Levoff's sentencing is scheduled for November 10. He could face a maximum penalty of up to 120 years in prison and up to $30 million in fines.
    Assuming that we can add $227,000 and $377,000, then 120 years in jail for $604,000 works out to 1 year for each $5,030 robbed, or 1 day in jail per $13.69 robbed.

    Also, a penalty of $30,000,000 for a crime of $604,000 works out to $49.67 in penalties for every dollar robbed.

    fred1ravnorodomwatto_cobrabyronl
  • Reply 3 of 13
    mac_dogmac_dog Posts: 980member
    I see nothing wrong with the possible sentence. White collar criminals and white collar tax evaders need to be punished just like everybody else. 
    foregoneconclusionravnorodom
  • Reply 4 of 13
    baconstangbaconstang Posts: 889member
    Seems a bit harsh, then again those thinking of a similar enterprise might think twice...
    watto_cobra
  • Reply 5 of 13
    anoyllaanoylla Posts: 31member
    «guilty to six counts of security fraud -- the same type of fraud he was hired to prevent»

    and that's why the punishment must be paradigmatical
    watto_cobra
  • Reply 6 of 13
    davidwdavidw Posts: 1,606member
    The "max" fine and prison time in this case is based on the max fine for an individual convicted of insider trading being $5M and 20 years per countThus this $30M fine and 120 years prison time reflects the 6 counts of insider trading he was guilty of.

    The reason why the "max" is so high is because insider trading is insider trading, regardless of the amount of money involve. A person netting $.5M from insider trading faces the same max sentences, as one that netted $5M or $500M. Plus the forfeit of their netted profit. 

    It's doubtful that the sentencing judge will impose the max fine and sentence in this case. Even if given the max, the fine can be $30M, but the prison time can be serve consecutively concurrently and thus only 20 years.  
    edited July 1 muthuk_vanalingamravnorodomwatto_cobra
  • Reply 7 of 13
    aderutteraderutter Posts: 534member
    The law of the land has always valued money far above human life. 
    watto_cobra
  • Reply 8 of 13
    danoxdanox Posts: 1,042member
    Not the needy but the Greedy…..
    watto_cobra
  • Reply 9 of 13
    jdwjdw Posts: 1,067member
    How is "up to 120 years & $30 million in fines" for a $227k stock gain NOT "cruel and unusual punishment"?

    That is a valid question without defending his actions.  

    Revenge-seeking people who don't see anything wrong with insane punishments like this are more scary than the perpetrators of these crimes. Reforming people in a few short months or years so they can become productive in society again should be the goal, not locking someone away forever at taxpayer's expense.
    watto_cobra
  • Reply 10 of 13
    crowleycrowley Posts: 10,234member
    jdw said:
    How is "up to 120 years & $30 million in fines" for a $227k stock gain NOT "cruel and unusual punishment"?
    Because of the "up to", and the fact that the man hasn't been sentenced yet.  The likelihood of him getting the maximum is low.
    watto_cobragrandact73
  • Reply 11 of 13
    ravnorodomravnorodom Posts: 501member
    Greed. This is like cops who busts drug smugglers also keep and sell drugs themselves. Insane. 
    watto_cobraanoylla
  • Reply 12 of 13
    chadbagchadbag Posts: 1,689member
    White-collar crime like this shouldn't be punished by strict prison time.  (Or very little).   Taxpayers shouldn't be paying yet more to feed and house non-dangerous people.  

    What should happen is they should be sentenced to some sort of half-way house type place or monitored existence and required to work a job that will pay for their half-way house existence as well as provide money to provide restitution as well as cover any fines.  They should be expected to pay their own expenses, fines, and restitution for the longer of either the set sentence or until they have paid everything.   (Ie if the sentence is 20 years they live this was for 20 years but if the amount is not yet paid they stay longer, but if they pay it in 10 they have to stay the 20). 

    Non violent, non dangerous criminals shouldn't become literal wards of the state which has to provide for their existence.  They should be punished in a way that doesn't out a financial burden on the state and which allows them to actually provide for themselves and for restitution.   Still harsh compared to normal life. 

  • Reply 13 of 13
    Levoff was meant to be in charge of enforcing a blackout period that would prevent people with such knowledge from buying or selling stock ahead of disclosure, but instead, he allegedly benefited by securing profits worth approximately $227,000 and avoided losses of $377,000.
    Levoff's sentencing is scheduled for November 10. He could face a maximum penalty of up to 120 years in prison and up to $30 million in fines.
    Assuming that we can add $227,000 and $377,000, then 120 years in jail for $604,000 works out to 1 year for each $5,030 robbed, or 1 day in jail per $13.69 robbed.

    Also, a penalty of $30,000,000 for a crime of $604,000 works out to $49.67 in penalties for every dollar robbed.

    Penalty is not a a trade. It is punishment. Start understanding this. It is supposed to be deterrent and education to criminal and others. You are not trading how much money for how many days. He hurt others by doing it and also destroyed integrity of his profession. For that one is getting severe punishment. Two dollars does not mean the same for different people.
    edited July 5 anoylla
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