SEC Charges Apple's Ex-Watchdog With Insider Trading

The transcript discusses a significant insider trading scandal involving Gene Levoff, a senior Apple executive. The SEC notified Apple of Levoff's actions, which involved using pre-release information for personal gain. Apple conducted an investigation, resulting in Levoff's termination. The scandal is compared to past issues like the options backdating scandal involving Fred Anderson. Despite the financial gains from insider trading, Levoff's actions were deemed a poor choice given his high salary and stock options. Apple has a strong legal department, ensuring continuity despite Levoff's departure.

What prompted the SEC to notify Apple about Gene Levoff's activities?

• Gene Levoff's insider trading based on pre-access to press releases

• A whistleblower report

• Gene Levoff's public statements

• A routine audit

How did Apple respond to the insider trading allegations against Gene Levoff?

• They promoted him to a higher position

• They issued a public apology

• They conducted an internal investigation and terminated him

• They ignored the allegations

What was the financial impact of Gene Levoff's insider trading?

• He gained $500,000 in profits

• He avoided $377,000 in losses and gained $227,000 in profits

• He gained $1 million in profits

• He lost $300,000

What changes occurred in Apple's legal department after 2017?

• No changes were made

• Kate Adams became the new General Counsel and reorganized the team

• The department was dissolved

• Gene Levoff was promoted to head the department

Why was Gene Levoff's decision to engage in insider trading considered poor?

• He was not caught

• He had a high salary and stock options that outweighed the gains from insider trading

• He was promoted after the incident

• He received a bonus for his actions