He was dismissed despite his performance ratings making him as one of the computer giant's top worldwide managers.
Mr Verner's claim, which was made before an Employment Appeals Tribunal hearing yesterday, came despite Apple acknowledging in written submissions that "the complaint is without foundation."
Mr Verner said: "(He was alleged to have) wiggled his butt in front of the group."
Mr Reeves' counsel angrily dismissed the allegations as "untrue." Apple's own written submissions to the tribunal acknowledge that the complaint, from August 2010, was "without foundation."
It further emerged that the female US employee who made the complaint had earlier been placed on a 'performance improvement programme' over her work by Mr Reeves.
The Irish manager was deeply unhappy over the complaint and its aftermath.
Mr Reeves, a father of five, is now taking an action for unfair dismissal against Apple.
Mr Verner, Apple's Director of Global Planning, said Mr Reeves had been in charge of spare parts and support materials for the firms European, Middle Eastern and African operation.
In 2009 Mr Reeves assumed the role of Project Management Officer where he ran a team based in Apple's headquarters in Cupertino in California.
He was based in Cork and Mr Verner decided he would be much more effective in his role if he relocated to California.
An offer was made to Mr Reeves to relocate.
Mr Reeves went with his wife to California but, a few weeks later, decided not to accept the position for family reasons.