A FORMER trader was sentenced to two-and-a-years in prison yesterday for an unauthorised purchase of about $1bn in Apple stock that eventually led to the demise of financial services firm Rochdale Securities.
David Miller, 41, was sentenced by US District Judge Robert Chatigny in Hartford, Connecticut, seven months after pleading guilty to wire fraud and conspiracy. Prosecutors said Miller, of Rockville Centre, New York, conspired with another individual to buy 1.625m Apple shares on 25 October 2012, the same day it planned to report third-quarter results, in the hopes that the share price would rise. The co-conspirator was not identified.
Miller falsely told Rochdale the trade was for a customer who had, in fact, only asked to buy 1,625 shares, prosecutors said. When the gamble failed, Rochdale faced $5.3m in losses on the unauthorised shares, leaving the firm undercapitalised, according to a related civil lawsuit filed against Miller by the US Securities and Exchange Commission (SEC). Miller’s attorney was not immediately available for comment. In April, following Miller’s plea, he said the actions were “out of character for a kind and generous family man who has lived an otherwise law-abiding and good life.”
City A.M. Reporter