A bad apple ? An apple turnover ?
A former trader was sentenced to 2 1/2 years in prison on Tuesday for an unauthorized purchase of about $1n in Apple stock that eventually led to the demise of financial services firm Rochdale Securities.
The judge also ordered Miller to serve three years of supervised release, with the first six months under home confinement, and to perform 200 hours of community service, according to prosecutors.
Miller caused 'devastation' to Stamford, Connecticut-based Rochdale, Assistant U.S. Attorney Paul Murphy said in a court filing this month. 'Overnight Rochdale went from being a respected broker-dealer with about three dozen registered representatives and employees, to being on life support and ultimately surrendering its broker-dealer license'.
Bloomberg reports that the government alleged that Miller placed an order on October 25, 2012, for 1.6 million shares of Apple on behalf of a customer who wasn’t named in court filings and acted as a co-conspirator.
As part of the scheme, the co-conspirator deliberately wrote the order in a way that allowed Miller to claim he had misinterpreted it, and that the customer had really meant to buy a much smaller amount, according to the government.