A former Rochdale Securities trader was arrested on wire fraud charges in connection with an unauthorized $1bn purchase of Apple stock that backfired, costing his company $5m, the U.S. said.
Bloomberg reports that David Miller, 40, appeared before U.S. Magistrate Judge Holly Fitzsimmons in Bridgeport, Connecticut, Tuesday after surrendering to the Federal Bureau of Investigation, prosecutors said. He was released on $300,000 bail, they said.
Reuters reports that according to the criminal complaint, Miller bought Apple shares ahead of the Apple's October 25th earnings announcement, then told his employer that the trade was for a customer who would bear the risk if it lost money.
David Fein, US attorney for the District of Connecticut, said: 'As alleged, this defendant orchestrated the unauthorised purchase of approximately $1bn of Apple stock in a fraudulent get-rich-quick scheme that backfired, causing massive losses for his employer'.
The Stamford, Connecticut-based brokerage has been struggling to survive and hold on to its staff after the trade.