Texas residents may be interested to learn that a man who formerly worked as a high-ranking corporate secretary for Apple Inc. has been charged with insider trading by the Securities and Exchange Commission. In the lawsuit, the SEC alleges that the man avoided losses of $345,000 by selling off $10 million in Apple stock. He sold the stock a short period before Apple came out with their earnings in July 2015 that resulted in a 4 percent drop in stock.
The SEC also alleges that the man used insider knowledge to gain $37,000 in several other instances. According to the SEC, the man formerly helped ensure Apple complied with securities laws, provided legal advice in regards to SEC filings and helped manage the corporate subsidiary structure of Apple. Apple has strict rules that prohibit employees from insider trading, and the SEC noted that Apple was not being charged in the case. The man was terminated by Apple in September 2018.
The charges were filed in New Jersey by the U.S. Attorney for the state. New Jersey claimed jurisdiction in the case because the man made his trades through First Republic and TD Ameritrade brokerage accounts that were executed by market makers in the state. The federal charges for insider trading carry a fine of up to $5 million and a potential penalty of up to 20 years in prison.
White-collar crimes are becoming more sophisticated in the United States. Many experts believe this is because of the more prevalent use of technology by both corporations and those who allegedly commit the crimes. These offenses often carry harsh sentences that may result in fines, prison time, damage to a reputation or company and a criminal record that will affect future employment opportunities. That's why an individual charged with a white-collar crime may want to reach out to a lawyer who could help reduce the charges or aim for an acquittal.