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

[syswizard]

Now if I were him, I would go to China or Russia and look for a rich benefactor. After all his system still works, he just needs capital to play with...

EXACTLY. And his escape plan just needs a fast helicopter and a private jet with oversized fuel tanks.
Otherwise he's facing an awful life of prison followed by poverty since he won't be able to trade US markets again. Worst of all, he won't be able to afford to hit the strip clubs...I'll bet the girls already miss him.

 

[Pekelo]

I think Europe is like a Swiss cheese, full of holes. After all hundreds of thousands of Syrians can enter its borders, so I am sure a lonely Brit could make it through Europe without papers and problem.

I always liked the idea of sailing. Once you are on the seas, nobody checks you. He could also look for a local backer who for his strategy would provide shelter...

This is an older report and for getting in, not out but the point is the same:

" 01 Dec 2006
Fake European Union passports are now so easy to obtain in Europe that an investigator was able to buy false passports for 20 EU countries and twice enter Britain with a bogus document, the BBC's Panorama programme will claim next week.

An undercover reporter for the programme will say that the dealers in false documents with whom she dealt were all confident about the quality of the passports and predicted that they would get her into Britain.

One dealer, when asked if other clients had got into the UK successfully, said: "There were no failures."

The dealer was so confident that he did not want to be paid until the reporter was in Britain. Another dealer said that if the passport failed, "the next one is on us"."

http://www.telegraph.co.uk/news/uknews/1535655/Fake-EU-passports-delivered-within-24-hours.html

 

[destriero]

Nice summary although I don't understand why you wrote it. Anyway, you are wrong on this:



He is not on trial for tax evasion. That would be a British jurisdiction offense. We already talked about this, the Brits could actually charge him and deny the extradition until he has a trial and finishes his sentence.

Now if I were him, I would go to China or Russia and look for a rich benefactor. After all his system still works, he just needs capital to play with...

Not wrong at all, as he's taken large tax losses, one as large at $40MM (2012). He owes what he owes. I like tautologies. His flagrant tax loss BS isn't going to disappear simply because the US has charged him with the spoofing charge. The tax loss fraud is a criminal offense.

He's not going to get around Rule 575 and similar rules at other exchanges.

 

[Pekelo]

Not wrong at all, as he's taken large tax losses,

I agree that he cheated on his taxes, but you are wrong until the UK decides to charge him with tax evasion. I am actually surprised they haven't done so, because there is good money to be recovered from Switzerland.

He should be charged, tried and sentenced for a good 5 years, and then he could be extradited...

 

[destriero]

I agree that he cheated on his taxes, but you are wrong until the UK decides to charge him with tax evasion. I am actually surprised they haven't done so, because there is good money to be recovered from Switzerland.

He should be charged, tried and sentenced for a good 5 years, and then he could be extradited...

Don't be an idiot. Make an attempt at logic. Stating that Nav evaded taxes and has yet to be charged on his scam does not preclude guilt, nor does it make me wrong if no charges have yet been filed. The fact that he declared up to $40MM in tax losses in a single year, and millions each year hence, is proof of the fraud. These are public tax filings related to his LLC.

The UK authorities seem to have no interest in pushing the tax agenda at this time as the larger crime involving wire and commodities fraud involved trading on a US exchange.

 

[JTrades]

Don't be an idiot. Make an attempt at logic. Stating that Nav evaded taxes and has yet to be charged on his scam does not preclude guilt, nor does it make me wrong if no charges have yet been filed. The fact that he declared up to $40MM in tax losses in a single year, and millions each year hence, is proof of the fraud. These are public tax filings related to his LLC.

The UK authorities seem to have no interest in pushing the tax agenda at this time as the larger crime involving wire and commodities fraud involved trading on a US exchange.

There are quite a few variables here, but my bet is if he serves a long (5+ year) sentence in the US and comes back to the UK, any sentence he receives here will be lenient. A UK judge will most likely take into account a US custodial sentence and on condition that Nav does all he can to pay the tax bill, will give him a suspended sentence.

 

[destriero]

There are quite a few variables here, but my bet is if he serves a long (5+ year) sentence in the US and comes back to the UK, any sentence he receives here will be lenient. A UK judge will most likely take into account a US custodial sentence and on condition that Nav does all he can to pay the tax bill, will give him a suspended sentence.

No idea. The tax thing is flagrant (taking $50MM and declaring losses well in excess of that amount), but Wesley Snipes received a three year sentence for FTF and pay. Up to five years for each count (US/IRS).

Nav flat-out conducted massive tax fraud; considered more serious than simply failure to file/pay. Sure, they will take any US sentence into account, but this f*cker didn't simply fail to file.

 

[running_bare]

LOL @ simple minds on ET

They are like monkeys climbing a tree:
the higher they climb (more they post), the more ass they show

It has already been established that the large "admin expenses" were in relation to "employee benefit trusts" (EBT).
Last thing we need is for the usual ET rabble to discuss this with their usual half-assed, uninformed guesses
(ET = poor man's SeekingAlpha/ZeroHedge wannabe)

When the company's tax return was filed (most recently for the 2013 accounts) it is mandatory to disclose any tax shelters used.
Certainly a loss the size of GBP 40 MM or so would already have raised questions with the UK tax authorities - back then & up to now...

Thing is, in the global hunt for taxes, the tax authorities can always retrospectively plug the loopholes that were legit at the time

Whether a EBT is legal is a matter for the UK courts to decide, based on the individual circumstances of each case.
Certainly beyond the scope for the simple minds on ET

All the UK gov want from those who have used such structures is to quickly settle (no criminal charges) by way of an "amnesty":
https://www.gov.uk/government/publications/employee-benefit-trusts-settlement-opportunity
If not they can fight the matter in court

All Sarao has to do is to pay up. Or fight the matter in court.
Getting his hands on sufficient ready cash after the DOJ case is finalized is another matter

LOL

 

[i960]

If I were Nav I'd definitely be more afraid of the railroading coming from the US side of things than the UK tax concerns. I think if they go nuts and give him 10-20 years for this whole spoofing ordeal then that's out of line and a waste.

Why not make him pay a penalty and walk like the majority of big banks doing way more flagrant manipulation? Oh that's right - its a big club and you ain't in it.

 

[Pekelo]

Dude, seriously, you think I am an idiot? You prove yourself wrong....

blah blah, self defeating bubbling

So first you state that he broke the law, and then you state the UK won't prosecute him. Then in the eye of the law it doesn't matter if he is guilty or innocent. Acts count, not opinions...

Also you said:" they will take any US sentence into account"

Why the fuck would they do that? Completely different cases. One is tax evasion, the other is cheating against the SEC rules.

If you rape a person in country A and murder another in country B, the penalties aren't affected by these 2 separate jurisdiction and acts.... Logic man, you ain't....

Also why would the Brits care that he is charged in the USA? The UK tax office could get its hands on all those taxmoney and they just let it go????

Anyhow, I have put you on Ignore for good measure...

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Now an interesting topic would be if both authorities wanted the money, the UK for taxpayment and the US for paying whoever they think got wronged in the flash crash....