“The FBI arrested a former trader at the Connecticut firm Rochdale Securities on Tuesday in a fraud scheme involving Apple stock, U.S. prosecutors said,” Reuters reports.
“According to a criminal complaint filed in federal court on Monday, David Miller bought Apple shares for himself ahead of the tech giant’s Oct. 25 earnings announcement, then told his employer Rochdale the trade was for a customer who would bear the risk if it lost money,” Reuters reports. “As a result, Rochdale was left unexpectedly owning over a million shares of Apple and had to sell them for a $5 million loss.”
Read more in the full article here.
“Authorities say Miller worked as an institutional sales trader for Stamford-based Rochdale Securities LLC,” The Associated Press reports. “They say he executed a trade to buy 1.6 million shares of Apple Inc. stock on a day the company was scheduled to announce earnings.”
“Prosecutors say the scheme was designed so Miller would profit if the stock price rose, but it declined,” AP reports. “They say Miller falsely claimed he made a mistake in a client’s order.”
Read more in the full article here.
MacDailyNews Take: Genius.
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Q. Who is the customer?
Wait while we call the customer
The customer claims no such instructions were given
Call the SEC and the cops.
Set in place procedures where purchases over a key amount must first receive authorization before purchase in future. Then seize all assets including bank account of offender including spouses. That will teach any would be offender that stock manipulation does not pay.
I assume the bastard was already well (salary) paid?
“Rochdale was left unexpectedly owning over a million shares of Apple and had to sell them for a $5 million loss.”
If the geniuses at Rochdale were patient they’d’ve made a huge profit.
PS everyone knows APPL tanks on earnings day.
Sure…everyone accept these so called analysts.:)
Most times recently but not always. Nothing is a sure bet. Not Apple. Not any stock. But it is tanking today. And it’s tanking after hours. Some of the big holders such as mutual funds are selling large blocks of Apple. Partially because it’s year end and partially because of the fiscal cliff. And also because the outlook for Apple is not necessarily great. They’re no longer is a consensus that Apple will continue to go higher. And I don’t mean by people who are shorting the stock either. Unless they come out with Apple iTV this week, I’m not sure what is going to drive Apple higher? Maybe great iPhone and iPad sales will help a little but clearly that is not going to be enough to drive the stock to where was in September. It has run up $80 in the last few weeks. Remember when it dropped from $706
to $505? Well, I think it’s about to drop again. I hope you’ve taken some profit in this last run up. This won’t be the bottom left to top right AAPL in the future. So be very careful. Learn from your mistakes. Good luck with your investing
Not sure what is going to drive Apple higher? Earnings growth wont do it huh? You hear the same nonsense over and over and over every time Apple drops. And eventually sometime in the next decade these guys may possibly be right. Then you will get the big “i told you so”.
And a new analyst is born…
Normal person’s brain is situated inside the skull, however anal-yst’s brain is situated inside his/her backend-access-port.
He pushed the wrong button …. His other choice was to sell before earnings, short the shares ….. He had an oops moment ……