UK trader arrested for May 2010 U.S. Stock market flash crash

Nav in the news once again:
http://www.marketwatch.com/story/fi...-can-barely-agree-an-agenda-2015-06-30?page=2
"This past April another version of what happened in the flash crash came from the CFTC and the Department of Justice. The agency now believes one trader, Navinder Sarao, significantly influenced trading that day by using “large, aggressive and persistent spoofing tactics” to trade E-mini contracts from his parent’s London basement. “Spoofing” is a technique used to manipulate prices in equities, futures or options by entering large orders that trick others into thinking the supply and demand of a particular stock or futures contract has changed dramatically."
 
Emphasis on "his parent's London basement" - for instead if it were "Goldman Sachs 200 West Street HQ" there would be no issue here.
 
Exactly, and this statement "....“Spoofing” is a technique used to manipulate prices in equities, futures or options by entering large orders that trick others..."
clearly was missing a key word : “Spoofing” is an illegal technique.....
 
just21 said:
Sarao Said to Seek Bail Again 3 Months After Flash-Crash Arrest
More...
An extradition hearing is scheduled for September.
Road trip boys ? Let's go to support Nav !!
There is a super over-zealous former US government attorney named Eric Sussman who is all over Nav and obviously scape-goating him in this case....read this B.S.:
----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
If history is any guide, it probably won’t be long before a British man accused of helping cause the 2010 flash crash is delivered to U.S. prosecutors. The task then turns to proving the Americans’ case against him.

Navinder Singh Sarao, 36, told a London court on Wednesday he’ll fight extradition to the U.S., where he faces 22 criminal charges including fraud and market manipulation. Prosecutors claim he made as much as $900,000 from trades as markets plunged on May 6, 2010, and more than $40 million over the next four years.

“Extradition to the U.S. is more or less inevitable unless you have serious health problems,” said Andrew Smith, a London lawyer who specializes in white collar-crime cases. Fighting the process can damage your chances of getting bail or negotiating a deal in the U.S., he said.

Eric Sussman, a former federal prosecutor in Chicago where Sarao would have to answer the charges, agreed. “The U.S. has a pretty good extradition treaty with the U.K.,” he said.

Sarao’s one-man trading operation, which he ran out of a house by Heathrow airport in West London, used automated software to manipulate markets, according to the U.S. Justice Department and the Commodity Futures Trading Commission. He was responsible for one in five sell orders during the flash crash, when nearly $1 trillion of value was erased from U.S. stocks in minutes, prosecutors say.

Should the U.S. win the extradition fight, the prosecution will pivot to proving the case. “The biggest thing is going to be intent,” said Sussman, the former prosecutor who is now in private practice at Paul Hastings LLP. “They’re going to have to, in essence, prove the reason he was making these trades was to fool the market.”

It’s not hard to see why he’d oppose going to the U.S. If convicted on all 22 counts, he could face a 380-year jail sentence.
 
sprstpd said:
Your conclusion is not substantiated by that article. Read it again.
More...

What I am saying is that Sarao might be in hot water because of those with whom he had his offshore fund with.
And no, he was not just trading his own money, as some assumed.
The UK Judge is not stupid for putting a 5million bail as some would like to
have us believe.
"After complaints from some fund investors over losses, authorities in at least five countries suspended or took enforcement action against funds linked to Mr. Cosgrove and his group this year, according to public statements by the authorities. All of the Mauritius and Guernsey funds were taken over by regulators this spring.
"
http://www.wsj.com/articles/flash-c...nd-network-now-under-investigation-1434527646
 
You must log in or register to reply here.
Back
Top