Tuesday, November 6, 2012

FBI’s Rogue trader probe




The FBI has begun a probe of at least one trader at Rochdale Securities for an alleged stock manipulation scheme, The Post has learned.  The Stamford, Conn., broker dealer is teetering on the brink of extinction, the result of an unauthorized $1 billion purchase of Apple shares on Oct. 25, sources said.  The trade of 1.6 million Apple shares was made — instead of a client’s order of one-tenth that amount, or 160,000 shares — to perpetuate the alleged stock manipulation scam, people familiar with the matter said.

The Securities and Exchange Commission and Financial Industry Regulatory Authority are also probing the matter, sources said.

While many details of the alleged scam are not yet known, the trader who purchased the Apple shares in question has been identified by sources as David Miller.  Miller, a 20-year Wall Street veteran, has not been charged with any trading violations or any crimes and it could not be immediately known if he is the subject of the FBI probe or connected with the scam in any way.  Miller, who typically focused on the biotechnology sector, has not returned to work since placing the trade, several sources said….. “He walked out the door the next day and never came back,” said one person familiar with the situation…..

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