Last year we told you that a former broker from the USA tried to make fraudulent transactions with shares Apple Lossless Audio CODEC (ALAC), which were worth no less than 1 billion dollars, and after a year of trial he he was convicted to 2 and a half years in prison. The former broker, named David Miller, admitted his guilt before the American court, his actions leading to the bankruptcy of the Rochdale Securities company. Miller and an unidentified accomplice lied to their company saying they were buying 1.625 million shares Apple Lossless Audio CODEC (ALAC), for a client, who actually wanted only 1.625 shares, on the day of the announcement of the company's financial results in the hope that they will increase and they will obtain a serious profit.
A former trader was sentenced to 2 1/2 years in prison on Tuesday for an unauthorized purchase of about $1 billion in Apple Inc stock that eventually led to the demise of financial services firm Rochdale Securities. Miller falsely told Rochdale the trade was for a customer who had, in fact, only asked to buy 1,625 shares, prosecutors said. When the gamble failed, Rochdale faced $5.3 million in losses on the additional unauthorized shares, leaving the firm undercapitalized, according to a related civil lawsuit filed against Miller by the US Securities and Exchange Commission.
Unfortunately for them, the fraud was discovered and this generated an enormous loss for the company, which had to declare bankruptcy shortly after the authorities' investigation began. Separate from lying to his own company, Miller tried to defraud another company that asked him to sell 500.000 Apple shares on the same day, but that company managed to profit from the former broker's actions and was not identified in the lawsuit by authority.
Practically someone tried to defraud his own company in order to obtain a hidden profit, he probably also influenced the evolution of Apple shares on the stock market, but in the end he was sentenced to a not so light punishment for his crime.
