Nov 5 An independent securities regulator is
investigating alleged unauthorized trades in Apple Inc
shares at Rochdale Securities LLC that have placed the brokerage
in a financially shaky position, the Wall Street Journal
A trader at Rochdale received an order for stock in Apple
but bought 1,000 times the number of shares requested, the WSJ
reported, citing a person familiar with the thinking of Rochdale
executives. The Financial Industry Regulatory Authority is now
investigating the trades, according to the WSJ.
The trader says the extra shares were ordered by mistake,
according to the person, but Rochdale is alleging the actions
were intentional. Rochdale suspects the trader was working with
an outside party to execute the trade and profit at the firm's
expense, the WSJ said, without identifying the trader.
A trader bought $750 million to $1 billion in Apple shares
last month without permission, and the stock later fell in value
by a few million dollars, reducing Rochdale's ability to weather
losses, Bloomberg News reported, citing two unidentified people.
Rochdale is in advanced talks with potential investors to
save the private brokerage, Bloomberg reported.
"The firm is recapitalizing and should be talking to the
market shortly," Daniel Crowley, Rochdale's president, told the
WSJ, declining to offer details on the trades or the probe.
As of Dec. 31, 2011, Rochdale had $3.44 million in net
capital, according to a filing with the U.S. Securities and
Rochdale and Apple could not immediately be reached for
comment by Reuters outside regular U.S. business hours.
Stamford, Connecticut-based Rochdale provides brokerage
services to institutional clients. Its equity research division
employs prominent bank analyst Richard Bove.