Rochdale Securities is probing whether a former trader
worked with others outside the firm in an alleged stock manipulation scheme
involving the purchase of $1 billion worth of Apple shares, The NY Post has
learned.
The Stamford, Conn., brokerage firm, which is fighting for
survival, is trying to piece together what led the ex-employee, identified by
sources as David Miller, to purchase 1.6 million Apple shares instead of
fulfilling an order to buy 160,000 on behalf of a client. Rochdale has been working with regulators and
investigators — including the Financial Industry Regulatory Authority, the
Securities and Exchange Commission and the FBI — to get to the bottom of the
errant Oct. 25 Apple trade.
Execs including Rochdale CEO Dan Crowley have told
investigators that they believe the trade was done deliberately in order to
influence the stock price as part of a scheme that netted roughly $20 million
in profits, according to sources familiar with the matter. The speculation is that Miller was working
with a group of outside traders who sold the stock short — or bets that the
price of Apple shares would fall….
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