Trader Receives 30 Month Prison Sentence for $1 Billion Apple Stock Scheme
A Connecticut court recently sentenced former trader David Miller to 30 months in prison for enacting and conspiring on an unauthorized purchase worth $1 billion of Apple stock. The ruling of US District Court Judge Robert Chatigny put an end to the seven-month long case, which saw Miller plead guilty to wire fraud and conspiracy according to Reuters
For those of you who didnít know, Miller was arrested in December 2012 by the US Federal Bureau of Investigation for a fraudulent stock purchase and was subsequently charged with wire fraud. Prosecutors in the case said the trader conspired with one other person to purchase 1.65 million shares of AAPL stock on October 25, 2012, on the chance that prices would rapidly increase after a quarterly earnings announcement scheduled for that day. The second person continues to remain unidentified.
According to the reports, a client had informed Miller to make a buy of 1,625 AAPL shares, worth $1 million. Instead the trader purchased 1,625 million shares worth $1 billion. Millerís former employer Rochdale Securities was reportedly put out of business due to the illegitimate buy. Rochdale ended up facing $5.3 million in losses on top of the unauthorized share purchase, forcing the firm to shut its doors, according to the document from a parallel civil suit involving the Securities and Exchange Commission. In addition, Miller is said to have persuaded another firm to sell 500,000 shares of Apple stock as a hedge against his billion-dollar bet. Court filings indicate the brokerage, which has remained unnamed, was able to come out of the ordeal with a profit.