Navinder Singh Sarao: London ‘Flash Crash’ trader gets another week to gather £5 million bail

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Navinder Singh Sarao has been charged by the US justice department with wire fraud, commodities fraud and market manipulation.

It is alleged that he used a high speed internet connection at his parent’s home in Hounslow, West London, to place a large number of fraudulent electronic orders to sell one type of financial contract.

He is then accused of cancelling the orders, forcing the prices back up again and taking profit from the price swing.

The Department of Justice believes that these trades contributed to the flash crash of May 6, 2010, when the Dow Jones stock exchange lost 700 points in a matter of minutes, wiping $800 billion of the value of US shares, before recovering again.

 

At a hearing last Wednesday, Sarao was granted bail provided he produce just over £5 million in bail and his parents put up £50,000.

He is not allowed to move from his parents’ house in Houndslow. He also cannot travel internationally or use the internet.

Sarao appeared in a grew sweater and tracksuit trousers and spoke only to confirm his name and address in the court.

He had already failed to make bail a week earlier and will appear in court again on May 6.

Source Article from http://www.standard.co.uk/business/business-news/london-flash-crash-trader-gets-another-week-to-gather-5-million-bail-10212991.html

April 29, 2015 |
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