$1 billion Apple scheme: NY trader charged in Connecticut Apple stock fraud scheme

By on Dec 5, 2012 in Business, Stock Market, Technology, United States, World Comments

A $1 billion Apple scheme by a New York trader was found to be an unauthorized purchase, according to federal prosecutors on Tuesday, December 4, 2012. Apple is the Cupertino, California-based company that provides iPods, iPhones and iPads.

Apple Stocks
Apple Inc. stocks
Image Credit: Google Finance

Reports say that the $1 billion Apple scheme by David Miller, an institutional sales trader for Rochdale Securities LLC in Stamford, involves buying 1.6 million shares of Apple Inc. stocks last October, a day before the Cupertino company announced its financial results for its fiscal 2012 fourth quarter ended September 29, 2012. Miller hopes to personally earn from the Apple stocks he bought if price per share increases, but his scheme fell flat as the Apple stock value declined after the fiscal earnings announcement.

Instead of earning from the his Apple stock trade scheme, Miller‘s Connecticut-based employer reportedly lost $5 million after it traded out.

In defending himself, Miller said that he only ordered 1,625 shares instead of the millions previously stated.

Authorities however said that Miller falsely claimed his mistake of ordering millions of stocks as stated in a client’s order.

According to reports, Miller told Rochdale that he was just executing a customer order. Prosecutors say that this is a clear misrepresentation by the sales trader as the customer was at risk of loss if the trade proved unprofitable and that he knew that it was his company will shoulder the risk of loss.

Due to his unauthorized Apple scheme, Miller was charged with wire fraud.

The 40-year-old Miller, from Rockville Centre, New York, appeared before the US District Court in Bridgeport. He did not enter a plea on Tuesday and is now out on a $300,000 bond.

Reports say that Miller could end up serving up to 20 years in prison if found guilty as charged.

Spread The News!

Tags: , , , , ,


Related News

What's On Your Mind?