Remember David Miller? Rochdale Securites trader who masterminded a scam that involved the "unauthorized purchase of about $1 billion in Apple stock," which he claimed was for a client (a lie)? Forget to dot a few essential i's and cross a few crucial t's in the scheme, which contributed to its failure and left the firm in a "negative capital position"? Robbed the universe of Dick Bové research for a time? Which thankfully turned out to be a very short amount of time, i.e. the period between Bové's resignation from Rochdale and the announcing of the winner of the Dick BovéSweepstakes? Yeah, he's going to jail.

David Miller, 41, was sentenced by U.S. District Judge Robert Chatigny in Hartford, Connecticut, seven months after pleading guilty to wire fraud and conspiracy. Prosecutors said the Miller, of Rockville Center, New York, conspired with another individual to buy 1.625 million Apple shares on October 25, 2012, the same day that the company planned to report third-quarter results, in the hopes that the share price would rise. The co-conspirator was not identified in court papers. 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 U.S. Securities and Exchange Commission. As a result, the firm eventually collapsed, the SEC said. Rochdale, which was based in Stamford, Connecticut, was not a defendant in either case and did not face allegations of wrongdoing.

Prosecutors also said Miller defrauded another brokerage by convincing it to sell 500,000 shares of Apple to hedge against the purchase he had made at Rochdale. The second brokerage, which prosecutors said was able to trade out of the position at a profit, was not identified in court papers.

[Reuters]