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Trader charged in $1 billion Apple trade
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David Miller, a trader at Stamford, Conn.-based Rochdale Securities, was charged with wire fraud Tuesday after allegedly arranging a $1 billion purchase of Apple Inc.stock in an unauthorized trade that left the brokerage firm nursing a multi-million dollar loss, according to federal prosecutors.
The feds allege that Miller cooked up a scheme to purchase 1.625 million shares of Apple with the brokerage’s money on Oct. 25, the same day Apple was set to announce quarterly earnings. Prosecutors contend Miller was banking on a rise in Apple stock following the earnings report. Instead, the stock fell.
When the plan went south, Miller blamed a fat finger – telling his employers that he had inadvertently bought the 1.625 million shares for a client who had wanted 1,625 shares, prosecutors said. The scheme left Rochdale holding more than 1.6 million shares of Apple stock. The firm quickly traded out of the position, but suffered a loss of around $5 million.
The feds allege that Miller cooked up a scheme to purchase 1.625 million shares of Apple with the brokerage’s money on Oct. 25, the same day Apple was set to announce quarterly earnings. Prosecutors contend Miller was banking on a rise in Apple stock following the earnings report. Instead, the stock fell.
When the plan went south, Miller blamed a fat finger – telling his employers that he had inadvertently bought the 1.625 million shares for a client who had wanted 1,625 shares, prosecutors said. The scheme left Rochdale holding more than 1.6 million shares of Apple stock. The firm quickly traded out of the position, but suffered a loss of around $5 million.
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