A Department of Justice press release states that a former Apple lawyer responsible for preventing insider trades has pleaded guilty to six counts of securities fraud.
The release states that Gene Levoff was once the company's former corporate secretary and director of corporate legal.
He "misappropriated material and nonpublic information regarding Apple's financial results" and executed trades involving company stock from February 2011 to April 2016.
The SEC filed initial charges against him in 2019 as a civil complaint. Levoff was also a member of Apple's Disclosure Committee.
This committee reviewed company earnings reports before publishing them. According to the DOJ, Levoff allegedly made profits of approximately $227,000 from certain trades and avoided losses of around $377,000 by using information he had access to.
Levoff also ignored the company's quarterly blackout periods, even though he had told others they couldn't buy or sell Apple stock then.
Levoff was also co-chairman of Apple's Disclosure Committee. This committee reviewed and discussed draft quarterly and yearly earnings material and periodic filings to the Securities and Exchange Commission (SEC) before they were made public.
Levoff used these materials to gain inside information on Apple that would help him decide whether to purchase or sell Apple stock before the earnings announcements.
He bought large amounts of stock when Apple reported strong net profit and revenue for a particular quarter. The stock was then sold at a profit after the market had reacted.
When there were lower-than-anticipated revenue and net profit, Levoff sold large quantities of Apple stock, avoiding significant losses.
Levoff is due to be sentenced on November 10. Apple did not immediately respond to a request for comment.