http://tech.fortune.cnn.com/2012/12/05/rochdale-securities-apple-miller-fraud/
"The client had asked Miller to buy 1,625 shares of Apple -- worth about $1 million at the opening price of $620 a share. Instead, Miller bought 1.625 million Apple shares -- a billion dollars worth -- allegedly assuring his firm, Rochdale Securities, that the client was good for the money and would assume the risk.
Miller's plan, according to the complaint, was that Apple would beat the Street's estimates, the stock would soar, and he would pocket the difference between his client's profits and the gains from the 1,000-fold larger trade.
Unfortunately for Miller, Apple disappointed Wall Street that day, falling short of analysts' earnings expectations and offering surprisingly conservative margin guidance. Instead of soaring, the stock fell. It closed the next day at $601.25, down $18.75 (3%) from Thursday's opening price.
On paper, those 1.6 million Apple shares were worth about $30 million less than what Miller paid for them.
Miller was charged with wire fraud, which carries a maximum penalty of 20 years. He was released after posting a $300,000 bond."
"The client had asked Miller to buy 1,625 shares of Apple -- worth about $1 million at the opening price of $620 a share. Instead, Miller bought 1.625 million Apple shares -- a billion dollars worth -- allegedly assuring his firm, Rochdale Securities, that the client was good for the money and would assume the risk.
Miller's plan, according to the complaint, was that Apple would beat the Street's estimates, the stock would soar, and he would pocket the difference between his client's profits and the gains from the 1,000-fold larger trade.
Unfortunately for Miller, Apple disappointed Wall Street that day, falling short of analysts' earnings expectations and offering surprisingly conservative margin guidance. Instead of soaring, the stock fell. It closed the next day at $601.25, down $18.75 (3%) from Thursday's opening price.
On paper, those 1.6 million Apple shares were worth about $30 million less than what Miller paid for them.
Miller was charged with wire fraud, which carries a maximum penalty of 20 years. He was released after posting a $300,000 bond."
