Rochdale Defections Mount as Three Traders Depart

Rochdale Securities LLC, the brokerage struggling to survive and keep its staff after an unapproved $1 billion trade in Apple Inc. (AAPL) soured, lost three more traders to competitors.

Richard Bennett and Keith Arnott, who work as equity sales traders, defected to MKM Partners LLC, while Barry Kaplan joined Oscar Gruss & Son Inc. in New York, Financial Industry Regulatory Authority records show. Rochdale lost five traders to Rafferty Capital Markets LLC earlier this month, including Kristen Talgo and Hal Tunick, who led equities institutional trading from Rochdale’s Stamford, Connecticut headquarters.

Rochdale President Daniel J. Crowley is seeking a rescue for the 37-year-old company that employs Dick Bove, the analyst known for his coverage of the biggest U.S. banks. The task has been complicated by departures and possible regulatory probes, people with knowledge of the situation have said.

Bennett, who has worked in the securities industry for more than 40 years, joined MKM, the Stamford-based equity research and trading firm, on Nov. 26 along with Arnott, Finra records show. Reached at MKM, Arnott declined to comment. Bennett didn’t immediately return an e-mail seeking more information.

Kaplan, who works in merger arbitrage and special situations, confirmed in an e-mail that he had joined Oscar Gruss, the brokerage that traces its roots to Poland almost a century ago. Crowley and Michael Shaoul, head of Oscar Gruss, didn’t return calls seeking comment.

Top executives told potential investors that an employee named David Miller bought about $1 billion of Apple stock around the time of the Cupertino, California-based technology firm’s October earnings release, the people said. Kenneth “Casey” Murphy, Miller’s lawyer at Simon & Partners LLP, said earlier his client had no comment.

Rochdale has provided trading and research for institutional clients since 1975, according to its website.

To contact the reporters on this story: Zeke Faux in New York at zfaux@bloomberg.net; Hugh Son in New York at hson1@bloomberg.net

To contact the editors responsible for this story: David Scheer at dscheer@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.