American rogue trader admits role in $1bn Apple stock fraud
A securities trader in the US has pleaded guilty to fraud after he purchased one billion dollars of Apple stock without permission and brought down his company.
London: A securities trader in the US has pleaded guilty to fraud after he purchased one billion dollars of Apple stock without permission and brought down his company.
David Miller's rogue trade caused the demise of Rochdale Securities after he bought 1.625million shares on the day Apple reported third-quarter results in October 2012.
Prosecutors said Miller had hoped to profit from a rise in Apple's share price, but the gamble backfired, Sky News reports.
According to the report, it was claimed that Miller, 40, made the trade on behalf of one of Rochdale's clients who had in fact only ordered 1,625 shares.
Miller allegedly conspired with another person to reap the profit if the share price went up or claim "human error" if the price dropped, the report added.
When the share price fell, Miller claimed he had made a mistake in purchasing a thousand times too much stock.
According to the report, the US Securities and Exchange Commission called the scheme "deliberate, brazen and ultimately ill-conceived".