Former Apple lawyer Gene Levoff was accused in 2019 of insider trading using information from Apple’s revenue and earnings as far back as 2011. He says his prosecution is unconstitutional because no specific criminal law forbids such action (via Bloomberg).
Mr. Levoff was charged under the U.S. Securities Exchange Act. This act prohibits “manipulative or deceptive devices or contrivances” but doesn’t specifically mention insider trading. Prosecutors say his inside trades gave him roughly US$227,000 in profits and helping him avoid US$377,000 in losses.
Kevin Marino, Mr. Levoff’s attorney, said in a filing:
The definition of insider trading is wholly judge-made: Every element of the crime and the scope of regulated individuals subject to it was divined by judges, not elected legislators. This alone renders the criminal prosecution of insider trading unconstitutional.
Apple fired Mr. Gene Levoff in 2018 after two months of leave.