Terry Don Rader: Sentenced, 4 Years

Dec 14

On December 14, 2000, Terry Don Rader of Pittsburg was sentenced by Federal Judge Robert B. Maloney to four years in prison to be followed by three years supervised release and to pay $2.4 million in restitution in connection with his conviction for violating Title 18, United States Code Section 1030(a)(4), computer fraud. The case was Cause no. 3:00-CR- 191-T in the Dallas Division of the Northern District of Texas.

Rader exceeded his authorized access to a protected computer system belonging to Southwest Securities, Inc. while employed as the registered financial principal at Weber Investment Corporation of Dallas, Texas.

In plea papers, Rader acknowledged entering false and fictitious prices for stocks held in his inventory accounts and entering false and fictitious securities trades in order to prevent Southwest Securities, Inc. and Weber Investment Corp. from making margin calls and discovering his growing trading losses from approximately October, 1995, through October 1997.

The case was investigated and prosecuted as part of the Securities Fraud Task Force for the Northern District of Texas, which involves cooperative efforts of the United State Attorney's Office, the Dallas Federal Bureau of Investigation and the Texas State Securities Board.