Suspended Quad trader in probe over $1bn Apple order A suspended trader at New York hedge fund Quad Capital is under US federal investigation for his alleged role in a $1bn rogue trading scandal involving the unauthorised purchase of Apple shares, according to attorneys involved in the matter. The trader, Harlan Sender, was suspended by Quad after the order to buy Apple shares on October 25 came under investigation. David Miller of brokerage Rochdale Securities took the order and used it to purchase 1.63m Apple shares, 1,000 times the size of Mr Sender's written instruction. Mr Miller pleaded guilty this month to conspiracy and wire fraud in connection with the trade. Prosecutors said at the time that he placed the order for a co-conspirator at a proprietary trading company. Prosecutors claim that Mr Miller and his co-conspirator hoped to profit from a rise in the share price of Apple, but were ready to claim the order had been misread by Mr Miller if Apple fell. When Apple shares did fall, Rochdale, a boutique brokerage, was forced to wind down the position at a loss of $5.3m. The firm subsequently went out of business. Quad Capital said he was the source of the buy order and has been questioned by federal authorities. No charges have been filed against Mr Sender and the attorneys both for Mr Sender and the firm said he had done nothing wrong. Mr Sender co-operated fully with the government's investigation, answered every question they asked and we understand from the government that there are no pending questions about Mr Sender or Mr Sender's conduct. Our understanding is that this matter is concluded," said Sean Casey, partner at Kobre & Kim. Gabriel Benincasa, general counsel at Quad, said: "Neither Quad or any employee of Quad has been implicated or accused of any wrongdoing." The hedge fund, which has 60 employees and trade in 20 markets, added that they have asked Mr Sender to rejoin the firm, but that he has not made a decision to date. Representatives from the US attorney's office in Connecticut, FBI and SEC declined to comment on the case other than to say the investigation is continuing. Quad said that Mr Sender was also the source for a July sell order in Apple shares that was not executed by Mr Miller. The federal charge against Mr Miller alleged that the conspirators had created the paper trail to show that there was a history of miscommunication between the two. At the time of the trades, Mr Miller's personal financial situation was deteriorating. He missed mortgage payments on his home, former Rochdale colleagues said. Between six months and a year before the trade, these former colleagues said, Mr Miller was at risk of losing his job due to some unauthorised activity but he was given a second chance in part because of his young family. Mr Miller's attorney, Kenneth C. Murphy at Simon & Partners, said there was an incident but that Miller had been cleared of any wrong doing by the firm. Rochdale employed about 60 people, including roughly a dozen traders, before it was forced to wind down Mr Miller's Apple positions. Mr Miller faces a maximum 25 years in prison and up to $500,000 in fines in connection to the charges. He is set to be sentenced on July 8. In a separate civil settlement, Mr Miller was barred by the SEC from working in the securities industry and may face a financial penalty.