Although Apple itself has done nothing illegal in this matter, the company is seeing its brand take a beating in the headlines for little more than its connection to the fraudulent activities engaged in by a single Wall Street trader.
Bloomberg confirms that an ex-trader with the firm Rochdale Securities LLC has been charged with wire fraud relating to an unauthorized $1 billion purchase of Apple stock. But when all didn't go as planned in the scam, the stunt cost his company $5 million.
The trader in question is David Miller, 40. Miller surrendered to the FBI yesterday and was subsequently 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.
In case you're wondering, wire fraud could land you in the slammer for up to 20 years.