On Wednesday, Bloomberg reported that a former trader with Rochdale Securities LLC has been charged with wire fraud relating to a purportedly fraudulent $1 billion purchase of Apple stock.
When the plan in question backfired, the company that employed the rogue trader sustained a massive loss of approximately $5 million.
David Miller is the 40-year-old trader at the center of the scandal. Yesterday, Miller surrendered to the FBI before being released on $300,000 bail.
The Stamford, Connecticut-based brokerage has been struggling to survive and hold on to its staff after Miller’s trade, made about the time of the Cupertino, California-based technology company’s October earnings release.
“As is so often seen in these types of cases, the alleged criminal conduct of Miller was for personal gain at the expense and detriment of others,” FBI agent Kimberly Mertz told the press. “Manipulating and orchestrating stock transactions in such a manner is a very serious criminal offense and its impact can be both devastating and lasting.”
Wire fraud carries a potential maximum sentence of 20 years.