A former Rochdale Securities trader, David Miller, has been jailed for 2 and a half years today, having been found guilty of fraudulently buying AAPL shares.
Miller cashed in on a client’s order, gaving taken notice of a forecasted rise in the stock. He took a client order for 1,625 AAPL shares, then shifted the decimal point 3 places, actually purchasing 1.6 million shares, worth around $1 billion. Miller paid for the move by using his employer’s capital, and sought to cash in on the venture when Apple’s shares rocketed following its earnings call on October 25 last year.
Miller sought to gain tens of millions of dollars, however Apple sorely missed its projected targets, and Miller ended up making a loss, losing $30 million in the process. His employer, Rochdale Securities went out of business as a result.
In court, Miller managed to persuade the court that he acted out of debt-induced desperation. As a result, he was only given 30 months in jail, rather than a possible 30 years. It’s highly likely that had Apple met its target for Q4 last year, Miller’s fraudulent dealings would never have been discovered.
Via: 9to5 Mac