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."
“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 said yesterday in a statement. “Manipulating and orchestrating stock transactions in such a manner is a very serious criminal offense and its impact can be both devastating and lasting.”
In case you're wondering, wire fraud could land you in the slammer for up to 20 years. [Bloomberg]
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